RBI’s Digital Lending directions
The Reserve Bank of India (RBI) has recently released a fresh set of rules under the Reserve Bank of India (Digital Lending) Directions, 2025 which aim to bring more transparency and accountability to the fast-growing digital lending space. Some of the important provisions include Centralised reporting of digital lending apps (DLAs) - All regulated entities (REs) must now upload details of their DLAs on the RBI’s Centralised Information Management System (CIMS) portal, Public directory of lending apps - RBI will publish a public directory of DLAs by July 1 on its website. This list will help users verify if a digital app is officially linked with an RBI-regulated lender, Greater transparency in loan aggregation - If a lending service provider (LSP) works with multiple REs, the borrower must get a digital view of all available loan offers and Stricter due diligence for third-party partners - Before signing deals with LSPs, REs must assess the partner’s technical capability, data privacy practices, and storage security, among other things.
Digital lending has grown rapidly, but it has also led to rising concerns over hidden charges, aggressive recovery practices, and fly-by-night apps.
The new rules aim to clean up the space by enforcing uniform standards and better borrower protection.
