Digital Lending Guidelines (RBI 2022)

The Digital Lending Guidelines, issued by RBI in September 2022, are the foundational regulation for every loan app, digital lender, and Lending Service Provider operating in India. Key requirements: (1) every digital lender must prominently disclose the underlying RBI-registered NBFC or bank funding the loan; (2) the Key Fact Statement must be provided to the borrower before agreement signing; (3) loan funds must be disbursed only through the regulated lender's bank account, not the LSP's; (4) borrower data may only be collected with explicit consent and may not be shared with unauthorised third parties; (5) recovery practices must follow the Fair Practices Code. These rules are why fake loan apps that hide the underlying NBFC are reportable to RBI's Sachet portal.