New Delhi, Dec 9 – Finance Minister Nirmala Sitharaman explained that the government and the Reserve Bank of India (RBI) keep rolling out measures to stop users from falling prey to unlicensed digital loan apps. The authorities are working closely with RBI and other regulators to clamp down on these rogue services.
The RBI has set up an online listing called “Digital Lending Apps (DLAs)”, which shows every app that is backed by a regulated entity (RE). Customers can check the directory to verify whether the app is legitimately authorized.
“If an unauthorised app is spotted, the Ministry of Electronics and Information Technology (MeitY) can instruct a block of its information under Section 69A of the Information Technology (IT) Act, 2000 after following the safeguards set out in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009,” Sitharaman said in a Lok Sabha response.
On 8 May 2025 the RBI issued the Digital Lending Directions, 2025. These directives outline mandatory procedures for recovery, data privacy, and customer complaint handling that must be followed by regulated entities, their lending service providers (LSPs) and the DLAs themselves.
The government is also talking to major internet intermediaries and messaging platforms to examine how unapproved loan apps operate. The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA) is actively monitoring these apps. To help citizens report cyber incidents—including illegal loan services—MHA has launched a National Cybercrime Reporting Portal and a helpline number: “1930”.
Banks, through the public portal “SACHET” and the State‑Level Coordination Committee (SLCC), are helping people file complaints about any entity that illegally takes deposits or lends money. This was confirmed by the Finance Minister.
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