New Delhi [India], March 18 (HBTV): The Reserve Bank of India (RBI) had constituted a Working Group on Digital Lending, including lending through online platforms and mobile apps. Based on its recommendations, the RBI has issued regulatory guidelines on digital lending to strengthen the regulatory framework, enhance customer protection and ensure a safer digital lending ecosystem.
All regulated entities are required to comply with these guidelines. Compliance is examined on a sample basis during supervisory assessments, and any observed non-compliance is taken up for rectification, along with supervisory or enforcement action as necessary, according to an official statement from the Ministry of Finance.
The Ministry of Electronics and Information Technology issues directions for blocking information, including fraudulent loan apps, under Section 69A of the Information Technology Act, 2000, after following the due process outlined in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009.
According to the Ministry of Finance, the government and the RBI have been taking various initiatives to protect citizens from exploitation by unauthorised mobile loan apps.
The RBI has operationalised a directory, Digital Lending Apps (DLAs), on its website with effect from July 1, 2025, consisting of all DLAs deployed by regulated entities. The directory is designed to help customers verify a digital lending app’s association with a regulated entity.
Major internet intermediaries and messaging platforms are being proactively engaged to review the operations of unauthorised loan apps. To disrupt the ecosystem of fraudulent digital lending apps, internet intermediaries have been instructed to institute stringent, technology-driven vetting and real-time enforcement mechanisms to detect and prevent malicious advertisements of illegal loan apps originating from offshore entities.
The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs has been analysing digital lending apps. To assist citizens in reporting cyber incidents, including illegal loan apps, the Ministry of Home Affairs has launched the National Cybercrime Reporting Portal (www.cybercrime.gov.in) and the National Cybercrime Helpline number 1930.
Banks, through the public-facing platform SACHET and the Inter-Regulatory State Level Coordination Committee, facilitate citizens in lodging complaints against entities involved in the illegal deposit or collection of money.
The RBI and banks have been carrying out awareness campaigns through SMS alerts, radio messages and publicity initiatives on the prevention of cybercrime, including risks linked to illegal loan apps. The RBI has also been conducting electronic-banking awareness and training programmes (e-BAAT), focusing on fraud awareness and risk mitigation.
Police and public order fall under the State List of the Seventh Schedule of the Constitution of India. States and Union Territories are responsible for the prevention, detection, investigation and prosecution of crimes, including those involving illegal mobile applications, through their law enforcement agencies. The central government supports these efforts through advisories and financial assistance for capacity building.
This information was provided by the Minister of State in the Ministry of Finance, Pankaj Chaudhary, in the Rajya Sabha. (ANI)