The Government of India and the Reserve Bank of India (RBI) have stepped up efforts to curb fraudulent digital loan applications, aiming to strengthen consumer protection and improve safety in the digital lending ecosystem.
The RBI had earlier set up a Working Group on Digital Lending, covering loans offered through online platforms and mobile applications. Based on its recommendations, the central bank introduced regulatory guidelines to make digital lending more transparent, secure, and customer-friendly.
All regulated entities (REs) are required to follow these guidelines. Compliance is monitored through periodic supervisory assessments, and any violations are addressed through corrective measures and, where necessary, enforcement actions.
The Ministry of Electronics and Information Technology (MeitY) has also been actively blocking fraudulent loan apps under Section 69A of the Information Technology Act, 2000, following due legal procedures.
To further protect citizens, several initiatives have been introduced:
- The RBI launched a Digital Lending Apps (DLA) directory on July 1, 2025, listing all apps associated with regulated entities. This helps users verify whether a lending app is legitimate.
- Authorities are working with internet platforms and messaging services to identify and restrict unauthorized loan apps, including preventing misleading advertisements, especially those originating from overseas entities.
- The Indian Cyber Crime Coordination Centre (I4C) is actively analysing such apps. Citizens can report cyber fraud, including illegal loan apps, via the National Cybercrime Reporting Portal (www.cybercrime.gov.in) or helpline number 1930.
- The SACHET portal, along with State Level Coordination Committees (SLCC), enables individuals to file complaints related to illegal deposit or lending activities.
- RBI and banks continue to run awareness campaigns through SMS, radio, and training programmes like e-BAAT to educate people about cyber fraud risks and prevention.
While law enforcement related to such crimes primarily falls under State and Union Territory authorities, the Central Government supports them through advisories and financial assistance to strengthen their capabilities.
The update was shared in the Rajya Sabha by Minister of State for Finance, Shri Pankaj Chaudhary.
Source : PIB
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