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ARTICLE · 09 JUNE 2025

Harmonising RBI's Digital Lending Directions With Indian Data Protection And IT Laws

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The digital lending ecosystem in India has undergone a seismic shift with the Reserve Bank of India (RBI) upgrading its regulatory framework from suggestive guidelines to binding Digital Lending Directions, 2025.

IndiaTechnology
Anuroop Omkar
Anuroop Omkar

The digital lending ecosystem in India has undergone a seismic shift with the Reserve Bank of India (RBI) upgrading its regulatory framework from suggestive guidelines to binding Digital Lending Directions, 2025. This transition marks a move towards formal, enforceable compliance—especially significant for regulated entities (REs), non-banking financial companies (NBFCs), and fintech lending startups using digital lending apps (DLAs). These Directions are not issued in isolation. They exist alongside India's evolving data privacy and technology laws, such as the Information Technology Act, 2000, the SPDI Rules of 2011, and most recently, the Digital Personal Data Protection Act, 2023 (DPDP Act). For compliance heads, CTOs, and legal counsels of fintechs, understanding how these frameworks intersect is critical for ensuring lawful digital lending operations in India.

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