CrackitToday App

RBI Guidelines For Digital Lending

RBI Guidelines For Digital Lending:

RBI has tightened the norms for digital lending seeing a number of cases of fraud. Digital lending involves giving and recovering loans through web platforms or mobile apps. It facilitates speedy disbursal and helps lower the costs of lending.


  • No middlemen: All loans disbursals/repayment between the holder of the bank account and the Regulated entities ( e.g. Commercial banks, cooperatives, NBFC etc.)
  • Limited information can be stored: Name, address etc. are allowed but no biometric information of borrower can be stored by Digital lending apps (DLAs)
  • Reporting of all lending activities to be done to Credit Information companies (CICs).
  • A borrower can exit the digital loan by paying principal and interest after the cooling-off period/ look-up period.
  • Guidelines will help in protecting consumers from harassment, breach of data, etc.