In a major regulatory move, the Reserve Bank of India (RBI) has issued a unified set of guidelines to improve accountability and customer trust in the digital lending ecosystem. Announced on May 8, the guidelines under the banner Reserve Bank of India (Digital Lending) Directions, 2025, consolidate earlier circulars and instructions issued to Regulated Entities (REs) and bring focus on borrower protection, data transparency, and responsible lending.

The directions include two key initiatives: enhanced transparency in digital loan aggregation and the operationalisation of a public directory of digital lending apps (DLAs).

The new framework mandates that REs submit details of their DLAs through RBI’s Centralised Information Management System (CIMS) portal. The portal will be live from May 13. REs will have until June 15 to upload their initial data.

The RBI clarified that the public directory is intended solely to help consumers verify whether a particular DLA is legitimately associated with a regulated lender. The list will be based on data submitted by REs on an as-is basis and will not be validated by the central bank. It will update automatically as REs add or remove DLAs from their records.

Commenting on the move, Shilpa Mankar Ahluwalia, Partner and Head of Fintech at Shardul Amarchand Mangaldas & Co., said, "The new digital lending guidelines have consolidated all existing rules. Two new requirements have been introduced: (i) Lending Service Providers (LSPs) who partner with multiple REs must disclose all eligible loan offers to borrowers, enabling them to choose the best option; and (ii) RBI will maintain a public directory of digital lending apps, a measure long in discussion, which will help curb unauthorised and fraudulent applications."

Fintech players and lending platforms have welcomed the RBI’s move as a progressive shift towards a more ethical and transparent credit landscape. Kunal Varma, CEO and Co-Founder of Freo, said, "The RBI’s introduction of more structure and transparency into the lending space—particularly around loan aggregation, lender service provider accountability, and legitimacy of apps—will help nurture deeper trust from consumers and create a level playing field for serious, compliant players."

According to the RBI, the objective is to ensure uniformity and consistency in digital lending operations while empowering borrowers with clear, accessible information about loan offers and the legitimacy of the platforms they interact with.

Ratul Paul, Chief Data Officer at Ecofy, called the guidelines a “long-overdue inflection point” for the fintech sector. "These regulations are not a hurdle, but an opportunity to rebuild trust, reinforce transparency, and establish sustainable digital lending. Ethical lending practices, backed by strong underwriting, especially for new-to-credit and underserved segments, will be key to future growth."

Paul added that collaboration among regulators, fintech firms, and REs will be critical to achieving credit inclusion at scale. "Fintech lenders who adapt swiftly to this compliance-driven ecosystem will not just survive, but lead in creating inclusive and responsible digital credit for India."