RBI’s 2025 Digital Lending Guidelines aim to protect borrowers | Fusion - WeRIndia

The Reserve Bank of India (RBI) has released the RBI (Digital Lending) Directions, 2025, a comprehensive framework to regulate digital lending.

These new guidelines consolidate all previous circulars and instructions under one uniform structure.

The aim is to ensure transparency, consumer protection, and stronger regulatory oversight in India’s growing digital credit market.

The directions apply to all Regulated Entities (REs), including banks and non-banking financial companies (NBFCs), that engage in digital lending.

As the digital lending space expands rapidly, the RBI seeks to address risks, ensure responsible lending, and safeguard borrowers’ interests.

One of the key features of the new framework is the mandatory reporting of all Digital Lending Apps used by regulated entities.

This reporting will be done through the RBI’s Centralised Information Management System (CIMS).

The portal becomes operational on May 13, 2025, and all REs must submit their initial data by June 15, 2025.

The guidelines also place a strong emphasis on increasing transparency in the way loan products are offered to consumers.

This includes clear disclosure of interest rates, processing fees, and repayment terms.

Special instructions have been issued for platforms that aggregate loans from multiple lenders.

These platforms must ensure fairness and neutrality in displaying loan options to borrowers.

Experts note that the new RBI guidelines play a vital role in removing bias from digital lending platforms.

By ensuring transparency and fairness in how loan options are presented, the framework is expected to help borrowers access suitable loan offers more efficiently and make informed financial decisions.

Key benefits of the guidelines include:

• Streamlined regulatory framework for digital lending
• Improved consumer protection and reduced borrower risk
• Transparent presentation of loan terms and conditions
• Clear rules for digital lending aggregators
• Enhanced oversight of digital credit platforms

Overall, these directions are expected to foster responsible digital lending and strengthen trust in the fintech ecosystem.

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