New Delhi: The Union government and the Reserve Bank of India (RBI) strengthened measures to curb fraudulent loan apps and improve consumer protection in the digital lending sector.
The RBI had earlier constituted a Working Group on Digital Lending, which examined lending through online platforms and mobile applications. Based on its recommendations, the central bank issued regulatory guidelines to strengthen oversight of digital lending.
These guidelines require all regulated entities to follow strict norms while offering digital loans. The RBI reviews compliance through supervisory assessments and can initiate enforcement action in cases of violations.
Meanwhile, the Ministry of Electronics and Information Technology directed blocking of information related to fraudulent loan apps under Section 69A of the Information Technology Act, 2000.
Fraudulent loan apps monitoring expands with digital tools
The RBI also launched a public directory of Digital Lending Apps (DLAs) on its website from July 1, 2025. The directory lists apps deployed by regulated entities and helps users verify whether an app is authorised.
In addition, the government has been engaging with internet intermediaries and messaging platforms to curb the spread of illegal loan apps. Authorities asked these platforms to implement stricter technology-based vetting systems and real-time monitoring.
The Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs has also been analysing digital lending platforms to detect illegal operations.
Citizens can report cyber incidents, including fraudulent loan apps, through the National Cybercrime Reporting Portal or by calling the helpline number 1930.
Banks also allow complaints through the SACHET portal and the State Level Coordination Committee mechanism for cases involving illegal deposit collection or financial fraud.
Further, the RBI and banks conduct public awareness campaigns through SMS alerts, radio programmes and training sessions under the e-BAAT initiative. These programmes focus on cybercrime prevention and risk awareness.
The government said that law enforcement agencies of states and Union Territories are primarily responsible for investigating crimes related to illegal mobile applications.
Union Minister of State for Finance Pankaj Chaudhary provided this information in a written reply in the Rajya Sabha.
