India: Reserve Bank's Digital Lending Directions 2025, including reporting obligations for data localisation entered into force (No. RBI/2025-26/36)

On 15 June 2025, the Reserve Bank of India (Digital Lending) Directions, 2025 (RBI/2025-26/36), including data localisation reporting obligations, entered into force. The directions apply to regulated entities, including commercial banks, co-operative banks, non-banking financial companies, and all-India financial institutions. The order requires the regulated entities to report all Digital Lending Apps (DLAs) they operate or participate in to the Centralised Information Management System (CIMS) portal. The order requires regulated entities to certify that all DLAs comply with data localisation requirements, specifically, that customer data is stored on servers located within India and, if processed abroad, is deleted from foreign servers and transferred back to India within 24 hours.