As part of its efforts to curb growing cyber fraud, the Reserve Bank is considering establishing a Digital India Trust Agency (DIGITA) to stop the mushrooming of illegal lending apps. The proposed agency will enable verification of digital lending apps and maintain a public register of verified apps. This move comes in response to the increasing number of fraudulent lending apps that exploit vulnerable individuals, resulting in financial losses and privacy breaches. The Digital India Trust Agency aims to enhance consumer protection and promote responsible digital lending practices. The agency will act as a regulatory body overseeing the operations and compliance of digital lending platforms, ensuring they adhere to ethical standards and follow legal protocols. Additionally, DIGITA will collaborate with law enforcement agencies to identify and prosecute individuals or entities involved in illicit lending practices. By establishing a public register of verified apps, the agency will help users make informed decisions when choosing lending platforms, reducing the risk of falling victim to fraudulent schemes. In recent years, the rapid expansion of mobile internet and digital payment systems has led to the proliferation of lending apps offering quick and easy access to credit. However, this convenience has also opened doors for unscrupulous actors to exploit unsuspecting borrowers. Numerous cases have emerged where illegal lending apps use aggressive tactics, such as intrusive data collection and high-interest rates, leading borrowers into a debt trap. To address these concerns and protect consumers, the RBI is taking proactive measures to regulate the digital lending space. The establishment of DIGITA is expected to bring much-needed transparency and accountability, thereby fostering a safe and reliable digital lending environment for all users. The proposed agency will not only verify the legitimacy of lending apps but also monitor their compliance with relevant laws and regulations. Proper documentation and disclosure of terms, conditions, and interest rates will become mandatory for digital lending platforms, promoting fair practices and preventing misleading advertisements. Through its collaborative efforts with other regulatory authorities, the agency will share information and intelligence to crack down on illegal lending operations effectively. By creating a robust framework, the Reserve Bank aims to foster trust and confidence among users while promoting financial inclusion and innovation. The Digital India Trust Agency will serve as a crucial step towards creating a resilient digital economy, enabling individuals to access credit securely and responsibly. With the increasing reliance on digital transactions and the growth of the fintech industry, it is imperative to establish strong safeguards to combat cyber fraud effectively. The Reserve Bank’s commitment to creating a Digital India Trust Agency reflects its dedication to protect consumers, enhance cyber resilience, and promote the growth of a digital economy.