Lok Sabha Question No. 118 (STARRED), answered on 2025-12-08
Subject: Unauthorised Digital Loan Apps
Ministry: FINANCE
Asked by: Shri Appalanaidu Kalisetti, Dr. Byreddy Shabari

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

## LOK SABHA STARRED QUESTION NO. *118

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

## Unauthorised Digital Loan Apps

## * 118 . DR. BYREDDY SHABARI: SHRI APPALANAIDU KALISETTI:

Will the Minister of FINANCE be pleased to state:

- (a) the number and details of unauthorised digital loan apps identified, blacklisted or shut down by the Government, along with the platforms where they operated;
- (b) the  measures  taken  to  prevent  recurrence,  including  regulatory  action,  public awareness campaigns and coordination with financial institutions and app stores; and
- (c) whether the Government proposes to create a central monitoring mechanism for such apps and protect citizens from predatory digital lending practices and if so, the details thereof?

## ANSWER

THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

(a) to (c): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA STARRED  QUESTION  NO. 118 FOR DECEMBER  8, 2025,  REGARDING 'UNAUTHORISED  DIGITAL  LOAN  APPS'  TABLED  BY  DR.  BYREDDY SHABARI  AND  SHRI  APPALANAIDU  KALISETTI,  HON'BLE  MEMBER  OF PARLIAMENT

(a) to (c): The Government has been constantly engaging with the Reserve Bank of India (RBI) and other concerned Regulators/stakeholders to curb the operations of unauthorized digital loan apps in the country. For public information, RBI has operationalized a directory 'Digital Lending Apps (DLAs)' on its website with effect from 01.07.2025, consisting of all DLAs deployed by Regulated Entities (REs) of RBI. The directory aims to aid the customers in verifying the claim of a DLA's association with a RE.

In the case of unauthorized digital loan apps being identified, Ministry of Electronics and Information  Technology  (MeitY)  is  empowered  to  issue  directions  for  blocking  of information for public access 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 unauthorized loan apps. These inter-alia, includes:

- i. 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  REs,  the Lending Service Providers (LSPs) engaged by them and the Digital Lending Apps (DLAs).
- 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. 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.
- v. 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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