How is the Centre and RBI Shielding Citizens from Unauthorised Loan Apps?
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Synopsis
The government and RBI are taking significant steps to protect citizens from unauthorised digital loan applications. With initiatives like the Digital Lending Apps directory and active collaboration with various regulatory bodies, Nirmala Sitharaman outlines measures in place to ensure safety in digital lending.
Key Takeaways
- Government initiatives aim to protect citizens from unauthorised digital loan apps.
- The RBI has created a directory for legitimate digital lending apps.
- Citizens can report cyber incidents through dedicated portals.
- New regulations ensure data privacy and grievance redressal.
- Proactive engagement with internet platforms is essential for curbing illegal apps.
New Delhi, Dec 9 (NationPress) The government, along with the Reserve Bank of India (RBI), has consistently implemented a range of initiatives aimed at safeguarding citizens from exploitation by unauthorised digital loan applications, stated Finance Minister Nirmala Sitharaman. The government is actively working with the RBI as well as other relevant regulators and stakeholders to limit the activities of these unauthorised digital loan apps.
The Central Bank has launched a directory titled ‘Digital Lending Apps (DLAs)’ on its official website, which lists all DLAs operated by regulated entities (REs) under the RBI.
This directory is designed to assist customers in verifying the claims made by a DLA regarding its connection with a RE.
“In cases where unauthorised digital loan apps are identified, the Ministry of Electronics and Information Technology (MeitY) has the authority to issue directives for blocking access to information under Section 69A of the Information Technology (IT) Act, 2000, following the due process outlined in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009,” explained Sitharaman in response to a query in the Lok Sabha.
The RBI issued the Reserve Bank of India (Digital Lending) Directions, 2025 on May 8, 2025, which outline detailed provisions regarding recovery, data privacy, and customer grievance redressal mechanisms that are mandatory for REs, their Lending Service Providers (LSPs), and the Digital Lending Apps (DLAs).
The government is proactively reaching out to major internet intermediaries and messaging platforms to monitor the operations of unauthorised loan apps.
The Indian Cyber Crime Coordination Centre (I4C), under the Ministry of Home Affairs (MHA), is actively assessing digital lending apps. To assist citizens in reporting cyber incidents related to illegal loan apps, the MHA has introduced a National Cybercrime Reporting Portal along with a National Cybercrime Helpline number “1930”.
Banks, through the public-facing platform ‘SACHET’ and the inter-regulatory State Level Coordination Committee (SLCC), facilitate citizens in filing complaints against entities involved in illegal deposit or collection of funds, informed the Finance Minister.
Point of View
The government's proactive measures against unauthorised loan applications reflect a crucial step in protecting consumers. This approach not only fosters trust in the financial ecosystem but also aligns with the broader objectives of ensuring transparent and safe digital lending practices.
NationPress
09/12/2025
Frequently Asked Questions
What initiatives has the government taken against unauthorised loan apps?
The government and RBI have launched several initiatives, including a directory of Digital Lending Apps and the ability to block unauthorised apps under the IT Act.
How can citizens report illegal loan apps?
Citizens can report illegal loan apps through the National Cybercrime Reporting Portal and the helpline number '1930'.
What is the Digital Lending Apps directory?
The Digital Lending Apps directory is a list on the RBI's website that helps customers verify the legitimacy of digital loan applications.
What provisions are included in the RBI's Digital Lending Directions?
The Directions cover aspects such as recovery, data privacy, and grievance redressal mechanisms for regulated entities and lending service providers.
What role does the Indian Cyber Crime Coordination Centre play?
The I4C helps assess digital lending apps and enhance cyber crime investigations related to unauthorised lending practices.
