India: Reserve Bank of India (Digital Lending) Directions 2025 (RBI/2025-26/36) were partially implemented

On 8 May 2025, the Reserve Bank of India (RBI) adopted the Reserve Bank of India (Digital Lending) Directions, 2025, establishing enforceable borrower rights in digital lending transactions. The Directions take immediate effect, except for paragraph 17, on reporting Digital Lending Apps (DLAs) to the Centralised Information Management System (CIMS), which comes into force on 15 June 2025, and paragraph 6, on Lending Service Providers (LSPs) partnering with multiple Regulated Entities (REs), which takes effect on 1 November 2025. The Directions grant individuals the right to access a Key Fact Statement (KFS), opt out of the sale of their data and targeted advertising, and withdraw from a loan agreement during a mandatory cooling-off period. Borrowers must be provided with a clear grievance mechanism through both Regulated Entities (REs) and Lending Service Providers (LSPs). Additionally, users can revoke consent for data processing and request deletion of their information. Special provisions protect minors, including restrictions on profiling, data sales, and targeted advertising without verified consent. The Directions require compliance certification and public accountability by REs for all digital lending platforms they use.