New Delhi,mar 17
The Government and the Reserve Bank of India (RBI) have intensified measures to tackle the proliferation of fraudulent loan applications. In a written response in the Rajya Sabha today, the Minister of State in the Ministry of Finance, Pankaj Chaudhary, detailed a coordinated strategy involving regulatory guidelines and enforcement actions to protect citizens from exploitation by unauthorised mobile platforms. Chaudhary stated that the RBI has issued specific regulatory guidelines on digital lending, which aim at firming up the regulatory framework for digital lending, including loans through mobile apps, while enhancing customer protection and making the digital lending ecosystem safe and sound.Under these new guidelines, all Regulated Entities (REs) are required to ensure strict compliance. The Ministry noted that compliance is examined on a sample basis during supervisory assessments. Any observed non-compliance results in rectification requirements apart from “initiating supervisory/ enforcement action, as deemed fit.”To further disrupt the ecosystem of illegal digital platforms, the Ministry of Electronics and Information Technology (MeitY) issues directions to block fraudulent apps under Section 69A of the Information Technology (IT) Act, 2000.A key component of this crackdown is the operationalisation of a directory titled ‘Digital Lending Apps (DLAs)’ on the RBI website, which was launched on July 1, 2025. This directory serves as a tool for customers to verify the association of any app with a Regulated Entity of the RBI. These intermediaries have been instructed to institute stringent, technology-driven vetting and real-time enforcement mechanisms to detect and prevent malicious advertisement of illegal loan apps originating from offshore entities.Reporting of these crimes has been streamlined through the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs.
