The Reserve Bank of India (RBI) has introduced new rules, known as the Digital Lending Directions, 2025, to regulate the growing digital lending industry in India. These rules aim to protect borrowers from issues such as hidden fees, high interest rates, data misuse, and fake loan apps. The rules apply to all banks, non-banking financial companies, co-operative banks, housing finance companies, and lending service providers that operate in the digital lending space.
Key aspects of the new rules include the requirement for lenders to sign official contracts with digital partners, ensuring that loan money is disbursed directly to the borrower’s bank account, and that all charges are declared upfront. Lenders must also obtain explicit consent from borrowers before increasing their loan amount or credit limit. Additionally, the rules emphasize the importance of protecting borrowers’ personal data, allowing them to opt-out of data sharing and delete their data later.
The rules also introduce a complaint redressal system, requiring all digital lenders to have a Grievance Officer and providing borrowers with multiple channels to raise complaints. The RBI has also launched a new reporting tool, the Centralised Information Management System (CIMS), to track and prevent fake loan apps.
Borrowers are advised to ensure that the lender they choose is registered with the RBI, provides a loan agreement before disbursing the loan, and does not ask for unnecessary personal data. They should also be aware of all charges and interest rates associated with the loan and have access to the Grievance Officer’s contact information.
The new rules aim to bring transparency, accountability, and fairness to the digital lending industry, protecting borrowers from fraud and misuse. By following these rules, lenders and digital apps can help build trust in India’s growing digital loan space. Overall, the Digital Lending Directions, 2025, mark a significant step towards regulating the digital lending industry and promoting a safer and more secure borrowing experience for Indians.