RBI to establish public repository for digital lending apps to curb unauthorised practices
The Reserve Bank of India (RBI) will create a public repository for digital lending apps as announced by Governor Shaktikanta Das during the monetary policy review on August 8. The Monetary Policy Committee decided to keep the repo rate unchanged at 6.5 percent.
- Aug 8, 2024,
- Updated Aug 8, 2024 12:50 PM IST
The Reserve Bank of India (RBI) plans to set up a public repository for digital lending apps to tackle unauthorised practices. RBI Governor Shaktikanta Das made this announcement during the monetary policy review address on August 8. Das mentioned that regulated entities are required to report their digital lending apps to the RBI to help mitigate issues arising from unauthorised applications.
Earlier this year, reports suggested that the central bank plans to establish the Digital India Trust Agency (DIGITA). This agency will be responsible for verifying digital lending apps and maintaining a public register of those that have been verified.
It is expected that DIGITA will vet digital lending apps. Apps without DIGITA's 'verified' signature will be considered unauthorised for law enforcement purposes. This step aims to be a crucial measure in combating financial crimes in the digital space.
The Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 percent. This decision was reached by a majority vote of 4:2. Additionally, the six-member panel chose to maintain a 'withdrawal of accommodation' stance by the same majority, which means all other rates like the Standing Deposit Facility (SDF), Marginal Standing Facility (MSF), and Bank Rate will remain unchanged.
Governor Das stated that domestic economic activities continue to show resilience. He projected the real GDP growth to be 7.2 percent for the fiscal year 2024-25, indicating a positive outlook for the country's economy.
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The Reserve Bank of India (RBI) plans to set up a public repository for digital lending apps to tackle unauthorised practices. RBI Governor Shaktikanta Das made this announcement during the monetary policy review address on August 8. Das mentioned that regulated entities are required to report their digital lending apps to the RBI to help mitigate issues arising from unauthorised applications.
Earlier this year, reports suggested that the central bank plans to establish the Digital India Trust Agency (DIGITA). This agency will be responsible for verifying digital lending apps and maintaining a public register of those that have been verified.
It is expected that DIGITA will vet digital lending apps. Apps without DIGITA's 'verified' signature will be considered unauthorised for law enforcement purposes. This step aims to be a crucial measure in combating financial crimes in the digital space.
The Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 percent. This decision was reached by a majority vote of 4:2. Additionally, the six-member panel chose to maintain a 'withdrawal of accommodation' stance by the same majority, which means all other rates like the Standing Deposit Facility (SDF), Marginal Standing Facility (MSF), and Bank Rate will remain unchanged.
Governor Das stated that domestic economic activities continue to show resilience. He projected the real GDP growth to be 7.2 percent for the fiscal year 2024-25, indicating a positive outlook for the country's economy.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine