NEW DELHI, Dec 8: Finance Minister Nirmala Sitharaman on Monday assured the Lok Sabha that the government, in continuous collaboration with the Reserve Bank of India (RBI) and other regulators, is aggressively working to curb the menace of unauthorized digital loan applications (DLAs) that exploit vulnerable citizens.
The Minister, in a reply to a question, detailed a comprehensive, multi-pronged strategy that spans regulatory oversight, legal blocking mechanisms, enhanced consumer awareness, and cybercrime reporting facilities.
In a significant step towards greater transparency, the RBI has operationalized a public directory of Digital Lending Apps (DLAs) on its website, effective from July 1, 2025.
“The Government has been constantly engaging with the Reserve Bank of India and other concerned Regulators/stakeholders to curb the operations of unauthorized digital loan apps in the country,” the Finance Minister stated. She highlighted the new directory, saying, “For public information, RBI has operationalized a directory ‘Digital Lending Apps (DLAs)’… The directory aims to aid the customers in verifying the claim of a DLA’s association with a Regulated Entity (RE).”
Sitharaman confirmed the mechanism in place for the complete removal of unauthorized apps from public access. The Ministry of Electronics and Information Technology (MeitY) is empowered to act under Section 69A of the Information Technology (IT) Act, 2000.
“In the case of unauthorized digital loan apps being identified, MeitY is empowered to issue directions for blocking of information for public access,” she informed the House, noting that this action is taken after strictly following the due process provided in the relevant IT Rules.
The Minister also outlined a series of proactive measures taken by the government and the RBI to safeguard citizens from exploitation:
Stricter Digital Lending Directions: The RBI issued the Reserve Bank of India (Digital Lending) Directions, 2025 on May 8, 2025. These directions enforce mandatory provisions for Regulated Entities (REs), Lending Service Providers (LSPs), and DLAs regarding recovery, data privacy, and a robust customer grievance redressal mechanism;
Engagement with Internet Intermediaries: Authorities are proactively engaging with the major internet intermediaries and messaging platforms to review and limit the spread of unauthorized loan apps;
Cybercrime Reporting: The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA) actively analyses digital lending apps. Citizens are encouraged to report incidents, including illegal loan apps, via the National Cybercrime Reporting Portal (www.cybercrime.gov.in) and the National Cybercrime Helpline number “1930.”
To further aid citizens, the public-facing platform ‘SACHET’ portal, run by banks, and the inter-regulatory State Level Coordination Committee (SLCC) are operational to facilitate the lodging of complaints against specific entities involved in illegal deposit/money collection.
“RBI and banks have been taking up awareness campaigns through short SMS, radio campaign, publicity on prevention of ‘cyber-crime’. Further, RBI has been conducting electronic-banking awareness and training (e-BAAT) programmes which focuses on awareness about frauds and risk mitigation,” Sitharaman said.
The Minister’s detailed response underscores the coordinated approach across multiple ministries and the Central bank to ensure a safe and sound digital lending ecosystem.
(UNI)
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