FM Sitharaman: RBI, govt actively protecting citizens from unauthorised digital loan apps
Finance Minister Nirmala Sitharaman said the government and RBI have periodically introduced measures to protect citizens from being exploited by unauthorised digital loan apps and ensure safe digital lending practices.
Monitoring and verification mechanisms FM Sitharaman:
The government is coordinating with the RBI and other regulatory authorities to monitor and prevent the operations of unauthorised digital loan apps, protecting citizens from financial exploitation.
The RBI has launched an online directory called ‘Digital Lending Apps (DLAs)’, listing all DLAs offered by its regulated entities to help customers verify legitimacy.
The directory allows customers to check whether a digital lending app (DLA) is associated with a regulated entity (RE), helping ensure the app’s authenticity, build trust among users, and protect them from potential fraud or unauthorised operations.
FM Sitharaman:Legal and regulatory actions
If unauthorised apps are identified, the Ministry of Electronics and IT (MeitY) can block public access following due legal procedures, Finance Minister Sitharaman told the Lok Sabha.
On May 8, 2025, the Reserve Bank of India (RBI) issued the Digital Lending Directions, 2025, to regulate digital loans.
The directions provide detailed rules on loan recovery, data privacy, and customer complaint handling, which must be followed by regulated entities (REs), their LSPs, and related digital lending apps (DLAs).
FM Sitharaman:Citizen support and complaint mechanisms
The government is working closely with online platforms and messaging services to track unauthorised loan apps, with the I4C under MHA examining these apps for compliance and safety.
Citizens can report cybercrimes, including unauthorised loan apps, using the Ministry of Home Affairs’ National Cybercrime Reporting Portal or by calling the helpline number “1930” for assistance.
Finance Minister Nirmala Sitharaman stated that banks, via the ‘SACHET’ portal and the State Level Coordination Committee (SLCC), help citizens lodge complaints against entities involved in illegal money collection or deposits.
