Lok Sabha Question No. 1231 (UNSTARRED), answered on 2025-12-08
Subject: Online Loan Apps
Ministry: FINANCE
Asked by: Dr. M K Vishnu Prasad

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO:1231

ANSWERED ON THE MONDAY, DECEMBER 8, 2025/AGRAHAYANA 17, 1947 (SAKA)

## Online Loan Apps

## 1231. DR. M K VISHNU PRASAD:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  taken  cognisance  of  online  loan  apps  which  have mushroomed in recent times, if so, the details thereof;
- (b) whether the Government is monitoring the high rate of interest charged by such loan apps;
- (c) if so, the details of action taken in this regard;
- (d) whether the Government has taken any steps to address the issues of people who are forced to pay high interests; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a) to (e): The Government has been constantly engaging with the Reserve Bank of India (RBI)  and  other  concerned  Regulators/stakeholders  to  monitor  the  digital  lending platforms  in  the  country.    RBI  has  issued  Reserve  Bank  of  India  (Digital  Lending) Directions,  2025  on  May  8,  2025. These directions have detailed provision regarding recovery,  data  privacy,  and  customer  grievance  redressal  mechanisms  which  are mandatory  for  the  Regulated  Entities  (REs),  the  Lending  Service  Providers  (LSPs) engaged  by  them  and  the  Digital  Lending  Apps  (DLAs).  RBI  has  further  issued  the 'Framework  for  Self-Regulatory  Organisation(s)  in  the  FinTech  Sector'  (SRO-FT framework) on 30.05.2024 for establishing and enforcing regulatory standards, promoting ethical conduct, ensuring market integrity, resolving disputes, and fostering transparency and accountability among its members.

Also,  Ministry  of  Electronics  and  Information  Technology  (MeitY)  issues directions for blocking of information, including fraudulent loan apps under Section 69A of Information Technology (IT) Act, 2000 after following the due process as provided in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009.

Further, the Government and RBI have been taking up various initiatives from time to time to protect citizens from exploitation by online loan apps. These inter-alia, include:

- (i)  The  banks  through  the  public  facing  platform  'SACHET'  portal  and  the  interregulatory  State  Level  Coordination  Committee  (SLCC)  facilitate  the  citizens  for lodging  of  any  complaints  against  specific  entity  related  to  deposit/  collection  of money illegally.

(ii)  Proactively  engaging  with  the  major  internet  intermediaries  and  messaging platforms to review the operations of unauthorised loan apps.

(iii) Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs (MHA) has  been  proactively  analysing  the  digital  lending  apps.  In  order  to  facilitate  the citizens to report cyber incidents including illegal loan apps, MHA has launched a National Cybercrime Reporting Portal (www.cybercrime.gov.in) as well as a National

Cybercrime Helpline number '1930'.

(iv) RBI and Banks have been taking up awareness campaigns through short SMS, radio  campaign,  publicity  on  prevention  of  'cyber-crime'.  Further,  RBI  has  been conducting electronic-banking awareness and training (e-BAAT) programmes which focuses on awareness about frauds and risk mitigation.

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