Context:
The Reserve Bank of India (RBI) has issued new compliance guidelines under the Reserve Bank of India (Digital Lending) Directions, 2025. These reforms aim to regulate digital lending platforms, enhance borrower protection, and ensure transparent and ethical lending practices.
Objective
To clean up the digital lending ecosystem by:
- Enforcing uniform regulatory standards
- Protecting borrowers from hidden charges and unethical practices
- Promoting transparency and accountability in the sector
Key Highlights
- Mandatory Reporting via CIMS Portal:
- All Regulated Entities (REs) must upload details of their Digital Lending Apps (DLAs) on the RBI’s Centralised Information Management System (CIMS).
- Portal Activation Date: May 13, 2025
- Compliance Deadline for REs: June 15, 2025
- Public Directory of DLAs:
- Launch Date: July 1, 2025
- RBI will host a live public directory on its website for consumers to verify DLAs linked to RBI-regulated lenders.
- The directory will be auto-updated as REs add or delist apps.
- Enhanced Transparency for Aggregators:
- Lending Service Providers (LSPs) must display all loan offers from multiple REs.
- Offers must include even those not matched or selected, along with the lender names.
- Stricter Vetting of Third Parties:
- REs must perform due diligence on third-party partners before engagement.
- Assessment criteria include technical capability, data privacy compliance, and data storage security.
Recent Context:
- In March 2025, the RBI conducted a $10 billion dollar-rupee buy-sell swap on February 21 to inject longer-term rupee liquidity into the financial system.
Significance
- Empowers borrowers through better access to verified digital lenders
- Curbs misuse of fintech platforms for exploitative lending
- Reinforces trust in RBI-regulated digital finance infrastructure
