New Delhi, Mar 18: The Reserve Bank of India (RBI) has issued regulatory guidelines on digital lending, including loans through online platforms and mobile apps, aimed at enhancing customer protection and ensuring a safe and sound digital lending ecosystem. The guidelines were framed based on recommendations from the RBI Working Group on Digital Lending. All regulated entities (REs) are required to comply, with supervisory checks conducted on a sample basis. Non-compliance may trigger rectification measures and enforcement action, according to the Ministry of Finance.
In addition, the Ministry of Electronics and Information Technology (MeitY) blocks fraudulent loan apps under Section 69A of the IT Act, 2000, following due process. The Government and RBI have been continuously working to curb exploitation by unauthorized mobile loan apps.
Since 1 July 2025, RBI has maintained a publicly accessible directory of “Digital Lending Apps (DLAs)” on its website, enabling customers to verify legitimate associations with regulated entities. Internet intermediaries have also been directed to adopt real-time, technology-driven measures to detect and prevent advertisements for illegal loan apps, particularly those originating offshore.
The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs has been monitoring digital lending apps. Citizens can report cyber incidents, including illegal loan apps, via the National Cybercrime Reporting Portal (www.cybercrime.gov.in) or the helpline number 1930. Banks have also set up complaint platforms like ‘SACHET’ and the State Level Coordination Committee (SLCC) for grievances regarding illegal deposit collection.
RBI and banks are running awareness campaigns via SMS, radio, and electronic-banking training programmes to educate citizens on fraud prevention and risk mitigation. While policing and public order remain state responsibilities under the Constitution, the Centre supplements state efforts with advisories and capacity-building support for law enforcement agencies.
This information was provided by Minister of State for Finance, Pankaj Chaudhary, in the Rajya Sabha.
