Government and RBI Enhance Measures to Regulate Digital Lending Apps

In a bid to control the proliferation of unauthorized digital lending apps, the Government of India and the Reserve Bank of India (RBI) have collectively initiated significant measures. On July 1, 2025, the RBI launched a directory of Digital Lending Apps (DLAs) under Regulated Entities, aimed at offering customers a reliable means to verify associations of DLAs with genuine financial entities. A regulation under the Information Technology Act empowers the Ministry of Electronics to block unauthorized apps. The RBI has also introduced comprehensive guidelines on digital lending practices, ensuring data privacy and grievance redressal. Additionally, the government has rolled out platforms for citizens to report these unauthorized apps, augmenting these steps with awareness campaigns on cyber safety.

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