Action Being Taken Against Dubious Loan Apps: FM Sitharaman

(MENAFN- KNN India) New Delhi, Dec 9 (KNN) The Government has intensified its crackdown on unauthorised and dubious digital loan Apps, while strengthening oversight in coordination with the Reserve Bank of India (RBI) and other regulatory bodies.

Union Finance Minister Nirmala Sitharaman in a written reply to a question in Lok Sabha on Monday said that the Government is working with major tech platforms to contain fraudulent loan apps.

RBI Introduces Verified Directory of Digital Lending Apps

A central measure in the enforcement drive is the RBI's Digital Lending Apps (DLAs) Directory, operational on the central bank's website from 1 July 2025.

The directory lists all apps deployed by RBI-regulated entities, enabling users to verify whether a lending platform is legitimately associated with an authorised financial institution.

Blocking Powers for Illegal Apps

For digital loan apps found operating unlawfully, the Ministry of Electronics and Information Technology (MeitY) is authorised to block public access under Section 69A of the Information Technology Act, 2000, following the procedure prescribed under the IT Blocking Rules, 2009.

Regulatory Safeguards Under Digital Lending Directions, 2025

To strengthen consumer protection, the RBI implemented the Digital Lending Directions, 2025, effective May 8, 2025.

These rules mandate stringent norms on recovery practices, data privacy, and grievance redressal for regulated entities, their lending service providers, and associated digital lending apps.

(KNN Bureau)

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