RBI and government launch verified digital lending app directory to curb fraudulent loan apps, protect borrowers

Fake loan apps

• RBI and government introduce new rules for digital lending apps
• RBI launches Digital Lending Apps directory for user verification
• MeitY blocks fraudulent loan apps under IT Act Section 69A

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The Reserve Bank of India (RBI) and the Government of India have announced new measures to address the issue of fraudulent digital loan applications operating in the country. The initiative aims to strengthen the regulatory framework for digital lending and improve protection for borrowers using online lending platforms.

The measures follow recommendations from an RBI working group that examined digital lending through online platforms and mobile apps. Based on these recommendations, RBI introduced guidelines for digital lending to ensure that financial institutions offering loans through apps follow regulatory standards.

According to the government, the framework is intended to make the digital lending ecosystem more transparent while protecting consumers from unauthorized loan applications.

Government and RBI Strengthen Measures Against Fraudulent Loan Apps

💠Regulatory framework, Digital Lending Apps (DLA) directory and cybercrime reporting mechanisms strengthen consumer protection in digital lending 💠All the Regulated Entities (REs) are required to comply with… pic.twitter.com/2bnI0hvZg2 — PIB India (@PIB_India) March 17, 2026

RBI digital lending guidelines

Under the guidelines issued by RBI, all regulated entities must follow specific rules when offering loans through digital platforms, including mobile apps and online portals. Compliance with these rules is reviewed through supervisory assessments conducted by the central bank.

If any violations are found during these checks, RBI may take supervisory or enforcement action against the entities involved. Such actions may include directing companies to correct compliance issues or initiating regulatory measures where required.

The Ministry of Electronics and Information Technology (MeitY) has also issued directions to block fraudulent loan apps. These actions are carried out under Section 69A of the Information Technology Act, 2000 following the procedures defined in the Information Technology Rules, 2009.

RBI launches digital lending apps directory

One of the key initiatives introduced by RBI is the Digital Lending Apps (DLA) directory, which became operational on July 1, 2025. The directory lists digital lending applications deployed by RBI-regulated entities.

The objective of this directory is to help users verify whether a loan app is associated with a legitimate regulated lender before downloading or using it.

Authorities are also engaging with internet intermediaries and messaging platforms to monitor the activities of unauthorized loan apps. These platforms have been instructed to introduce technology-based vetting systems to detect and prevent advertisements related to illegal loan applications.

Reporting cybercrime incidents

The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs has been analysing digital lending apps to identify potential threats. Citizens can report incidents involving illegal loan apps through the National Cybercrime Reporting Portal or by calling the national cybercrime helpline number 1930.

Additionally, complaints related to illegal deposit collection or unauthorized financial activities can be filed through the SACHET portal supported by banks and regulatory authorities.