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ARTICLE · 12 JUNE 2025

Digital Lending Directions, 2025

Kochhar & Co.
Kochhar & Co.
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On May 08, 2025, the Reserve Bank of India issued the Digital Lending Directions, 2025. The Directions apply to digital lending activities undertaken by regulated entities such as banks and non-banking financial companies.

IndiaTechnology

INTRODUCTION

On May 08, 2025, the Reserve Bank of India ("RBI") issued the Digital Lending Directions, 2025 ("2025 Directions"). The Directions apply to digital lending activities undertaken by regulated entities such as banks and non-banking financial companies. The Directions are a fresh iteration of the RBI's earlier Guidelines on Digital Lending dated September 02, 2022 ("2022 Guidelines") and Guidelines on Default Loss Guarantee (DLG) in Digital Lending dated June 08, 2023 ("DLG Guidelines"), both of which have stand repealed by the Directions. The 2025 Directions introduce new obligations across borrower protection, digital interface compliance, portfolio-level risk sharing and data storage.

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