RBI Issues Digital Lending Directions for Banks & NBFCs

Circular No. RBI/2025-26/36 DOR.STR.REC.19/21.07.001/2025-26; Dated: 08.05.2025

In a move aimed at strengthening oversight and promoting responsible lending practices in the digital ecosystem, the Reserve Bank of India (RBI) has issued the Digital Lending Directions, 2025. These directions are designed to bring greater transparency, accountability, and regulatory compliance to digital lending operations carried out by banks and non-banking financial companies (NBFCs).

1. Scope of Applicability

The directions are applicable to all Regulated Entities (REs) engaged in digital lending activities, which include –

• Scheduled Commercial Banks
• Non-Banking Financial Companies (NBFCs)
• Any other financial entities regulated by the RBI

These directions cover the full range of digital lending practices, including those carried out through Digital Lending Apps (DLAs) and platforms, either directly by the REs or through their lending service providers (LSPs).

2. Mandatory Reporting of Digital Lending Apps (DLAs)

One of the key mandates under the 2025 Directions is that REs must report the details of their Digital Lending Apps through the Centralised Information Management System (CIMS) Portal of the RBI.

This reporting requirement aims to –

• Maintain a centralised registry of DLAs in operation.
• Enable the RBI to monitor the growing digital lending landscape.
• Identify unregulated or unauthorised lending platforms more efficiently.

3. Deadline for Compliance

REs have been directed to complete the registration and reporting of all active DLAs on the CIMS Portal by June 15, 2025. Non-compliance with this deadline may lead to regulatory scrutiny and appropriate supervisory action.

4. Expected Impact and Industry Preparedness

These directions mark a continued effort by the RBI to –

• Protect borrowers from predatory lending practices.
• Ensure greater consumer transparency in digital lending transactions.
• Promote safe and ethical lending through digital platforms.

All Regulated Entities are advised to –

• Review their existing digital lending arrangements.
• Ensure that all DLAs—whether in-house or third-party—are fully compliant with the latest reporting norms.
• Implement necessary technological and procedural updates to integrate with the CIMS portal ahead of the deadline.

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