The Reserve Bank of India (“RBI”), in exercise of powers conferred under Section 21, Section 35(A) and Section 56 of the Banking Regulation Act, 1949, Section 45(JA), Section 45(L) and Section 45(M) of the Reserve Bank of India Act, 1934, sections 30(A) and Section 32 of the National Housing Bank Act, 1987, Section 6 of the Factoring Regulation Act, 2011 and Section 11 of the Credit Information Companies (Regulation) Act, 2005, has notified the ‘Reserve Bank of India (Digital Lending) Directions, 2025’ to establish a comprehensive regulatory framework governing digital lending activities carried out by Regulated Entities (“REs”).[1] All provisions of the Directions, except as mentioned below except for Paragraph 6 which shall be effective from November 01, 2025 and Paragraph 17 which shall be effective from June 15, 2025.
The Directions apply to digital lending activities undertaken by the following REs:
- All Commercial Banks
- All Primary (Urban) Co-operative Banks, State Co-operative Banks, and Central Co-operative Banks
- All Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs)
- All All-India Financial Institutions
The Directions aim to create a uniform regulatory environment for digital lending, promote responsible innovation, safeguard borrower interests, and mitigate risks associated with unregulated digital lending platforms.
[1] https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60403