The RBI introduced the Digital Lending Directions in 2025 to establish a uniform framework for technology-driven lending in India. The objective is to protect borrowers, ensure transparency, and strengthen systemic integrity in response to a surge in unauthorized lending apps, coercive recovery practices, and misuse of customer data.

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⚠️ Caution: RBI’s Digital Lending Directions and related circulars are updated from time to time. Always refer to the official website of RBI for the latest notifications, clarifications, and amendments.

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These guidelines apply directly to REs (NBFCs) and indirectly to LSPs that operate in partnership with them. Compliance with these Directions is therefore mandatory for both models.

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🪙 Overview of the Directions

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💼 Key Takeaways for Model 1: Partnership (LSP)

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🏛️ Key Takeaways for Model 2: Licensed Lender (NBFC) ****

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⚠️ Note the disclaimers regarding the document's limitations and the need for professional legal advice.

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With fund flows and disclosures structured, the next critical step is building robust identity verification and monitoring systems. Proceed to Step 4: KYC & AML Compliance.

Or return to Step 2: Core Licensing & Registration.

Or revisit the Toolkit Flow Overview to see the entire roadmap at a glance, or return to the Toolkit Homepage.

Need clarification on terminology? Refer to our comprehensive Glossary.