India: RBI released Regulatory Framework for Digital Lending including provisions on data protection

On 10 August 2022, the Reserve Bank of India ("RBI") launched its regulatory framework for digital lending, which includes requirements for data protection. The framework is based on the report of the Working Group on digital lending, including lending through online platforms and mobile apps. According to Annex 1, digital lending apps should only collect data on the basis of need and obtain the prior and explicit consent of the borrower, which can be verified if required. Moreover, these companies must also have a comprehensive privacy policy, which includes information on third parties allowed to collect personal information. Finally, no biometric data should be collected or stored in digital lending app-related systems.