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ARTICLE · 25 NOVEMBER 2025

RBI Introduced Digital Lending Direction, 2025

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On May 08, 2025, Reserve Bank of India (hereinafter referred to as RBI) issued consolidated guidelines on digital lending by Regulated Entities (hereinafter referred to as RE) to streamline various regulatory instructions...

IndiaPrivacy

Introduction

On May 08, 2025, Reserve Bank of India (hereinafter referred to as RBI) issued consolidated guidelines on digital lending by Regulated Entities (hereinafter referred to as RE) to streamline various regulatory instructions1

This direction have repealed various previous circular and guidelines2which dealt with digital lending to provide a comprehensive directions and increase confidence in digital lending ecosystem.

Purpose

The current direction is an updated version, addressing issues like primarily relating to unbridled engagement of third parties, mis-selling, breach of data privacy, unfair business conduct, charging of exorbitant interest rates, and unethical recovery practices.

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