New Delhi: The Reserve Bank of India (RBI) and the Government of India have rolled out a fresh set of measures to crack down on fraudulent digital loan apps and improve borrower safety. The action comes against the backdrop of increasing criticism of the illegal lending platforms, which exploit their users by pretending to charge no fees and manipulating the data and harassing customers.
The new framework is focused on transparency, higher levels of compliance and simplified verification of users before they access any lending platform. The officials note that the idea is to develop confidence in the digital lending ecosystem and ensure that the unauthorised actors do not play freely.
Government and RBI Strengthen Measures Against Fraudulent Loan Apps
đź’ Regulatory framework, Digital Lending Apps (DLA) directory and cybercrime reporting mechanisms strengthen consumer protection in digital lending
💠All the Regulated Entities (REs) are required to comply with… pic.twitter.com/2bnI0hvZg2
— PIB India (@PIB_India) March 17, 2026
Verified digital lending apps directory launched
The most important move towards this initiative is the introduction of the Digital Lending Apps (DLA) directory by RBI. The directory, which is operational from July 1, 2025, contains all the lending apps which are associated with RBI-regulated entities.
This helps users to determine the authenticity of an app prior to downloading or taking a loan. It is likely to mitigate the threat of becoming victims of fraudulent or unregistered platforms.
Stricter compliance and regulatory checks
Under RBI’s digital lending guidelines, all regulated entities must follow clear rules while offering loans through mobile apps and online platforms. These include transparency in charges, proper disclosure, and adherence to fair practices.
RBI conducts periodic supervisory assessments to ensure compliance. If violations are found, the central bank can initiate enforcement actions or direct companies to fix issues.
Crackdown on illegal apps and misleading ads
The Ministry of Electronics and Information Technology (MeitY) has been actively blocking fraudulent loan apps under Section 69A of the IT Act, 2000.
Authorities are also working with internet platforms and messaging services to detect and remove ads promoting illegal loan apps. Companies have been asked to adopt real-time monitoring and stricter vetting systems.
Cybercrime reporting and public awareness
The Indian Cyber Crime Coordination Centre (I4C), under the Ministry of Home Affairs, is analysing digital lending apps to identify threats. Citizens can report fraud cases through the National Cybercrime Reporting Portal or by calling helpline number 1930.
Additionally, complaints related to illegal deposits or unauthorised financial activities can be filed through the SACHET portal. The RBI and banks are also running awareness campaigns through SMS, radio, and training programmes to educate users about digital fraud risks.
States to lead enforcement on ground
While the central government is strengthening policy and oversight, law enforcement remains a state subject. State and Union Territory agencies are responsible for investigating and prosecuting cases involving illegal loan apps.
The Centre continues to support these efforts through advisories and funding for capacity building, aiming for a coordinated approach to tackle digital lending fraud across the country.