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RBI Looking To Set Up An Agency To Curb Illegal Lending Apps

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RBI Looking To Set Up An Agency To Curb Illegal Lending Apps

The Reserve Bank of India (RBI) is considering establishing a public register of whitelisted lending apps to crack down on illegal lending platforms in the country. In response to multiple deaths by suicide linked to predatory practices by digital lenders, the RBI plans to create the Digital India Trust Agency (DIGITA) to issue 'verified' signatures for authorized entities. Lending apps without this verification would be deemed unauthorized and face strict action. The RBI has taken steps in the past to regulate online lending platforms, such as directing Google to implement stricter norms and removing fraudulent lending apps from its Play Store. Despite efforts to curb these platforms, the Indian lendingtech market is projected to become a $1.3 trillion opportunity by 2030.

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