Government and RBI Strengthen Digital Lending Ecosystem Through New Regulatory Framework, Digital Lending App Directory and Enhanced Customer Safeguards

The Government has been constantly engaging with the Reserve Bank of India (RBI) and other concerned Regulators/stakeholders to curb the operations of fake/illegal loan apps in the country. For public information, RBI has operationalized a directory 'Digital Lending Apps (DLAs)' on its website with effect from 01.07.2025, including DLAs engaged by Regulated Entities (REs) of RBI. The directory aims to aid the customers in verifying the claim of a DLA's association with a RE.

Ministry of Electronics and Information Technology (MeitY) has so far blocked a total of 87 illegal loan lending applications under section 69A of the Information Technology Act 2000 after following the due process. Additionally, sectoral regulators have been authorised to issue directions for blocking of information for public access under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2025, notified on 22.10.2025

Further, the Government and RBI have been taking up various initiatives from time to time to protect citizens from exploitation by fake/illegal loan apps. These inter-alia, includes:

1. 1. RBI has issued Reserve Bank of India (Digital Lending) Directions, 2025 on May 8, 2025. These directions have detailed provision regarding recovery, data privacy, and customer grievance redressal mechanisms which are mandatory for the REs, the Lending Service Providers (LSPs) engaged by them and the Digital Lending Apps (DLAs).
2. 1. The Government and RBI have been proactively engaging with the major internet intermediaries and messaging platforms to review the operations of unauthorised loan apps. i Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs (MHA) has been proactively analysing the digital lending apps. In order to facilitate the citizens to report cyber incidents including fake/illegal loan apps, MHA has launched a National Cybercrime Reporting Portal (www.cybercrime.gov.in) as well as a National Cybercrime Helpline number "1930".
   2. The banks through the public facing platform 'SACHET' portal and the State Level Coordination Committee (SLCC) facilitate the citizens for lodging of any complaints against specific entity related to deposit/ collection of money illegally.
   3. RBI and banks have been taking up awareness campaigns through short SMS, radio campaign, publicity on prevention of 'cyber-crime'. Further, RBI has been conducting electronic-banking awareness and training (e-BAAT) programmes which focuses on awareness about frauds and risk mitigation.

This information was given by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

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