The Reserve Bank of India issued the Reserve Bank of India (Digital Lending) Directions, 2025 to tighten rules for digital lending in India. The directions matter because they make recovery practices, data privacy, and customer grievance redressal mandatory for regulated digital lending actors.
The Ministry of Finance said the Government and the Reserve Bank of India have been taking initiatives to protect citizens from exploitation by fake and illegal loan apps. The new directions are the regulatory response highlighted in the official communication.
What the Reserve Bank of India directions cover
The directions apply to three sets of entities: Reserve Bank of India Regulated Entities, Lending Service Providers engaged by them, and Digital Lending Apps. The directions are described as mandatory.
The official communication highlights three core compliance areas:
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