DIGITAL LENDING 2.0? BREAKING DOWN THE RBI DIGITAL LENDING DIRECTIONS, 2025

The Reserve Bank of India (“RBI”) has released the Digital Lending Directions, 2025 (“DL Directions”), which overhaul and consolidate earlier guidelines on digital lending and introduce new measures to address emerging risks in the digital lending ecosystem and enhance consumer protection. The RBI’s intent behind the DL Directions is to streamline digital lending activities and ensure there is a balance between innovation and borrower protection. INDUSLAW's Shreya Suri, Naqeeb Ahmed, Srika Agarwal, and Anushka Narayan discuss the key provisions of the DL Directions and analyse their implications for the RBI regulated entities as well as lending service providers.