About Digital India Trust Agency:
- It will be responsible for stopping illegal lending apps from popping up. It will enable the verification of these digital lending apps and will maintain a public register of these verified applications.
- Any app which will not carry the “verified” tag of DIGITA, will be considered unauthorised.
- Significance: This will create an important and much-needed checkpoint in the fight against online financial fraud.
What is digital lending?
- It is a remote and automated lending process, largely by use of seamless digital technologies. It generally involves three parties – a lender, a lending service provider (including a digital lending platform) and a borrower.
- It involves lending through web platforms or mobile apps, utilising technology in customer acquisition, credit assessment, loan approval, disbursement, recovery and associated customer service.
- It includes products like Buy Now, Pay Later (BNPL), which is a financing option (or simply a short-term loan product). It allows one to buy a product or avail a service without having to worry about paying for it immediately.
