RBI Cracks Down on 47 Illegal Lending Apps — How to Verify Your Lender

The Reserve Bank of India has intensified its crackdown on illegal digital lending apps, directing Google to remove 47 applications from the Play Store that were operating without valid NBFC registrations. Several apps were found charging annualized interest rates exceeding 200%.

The enforcement action follows hundreds of consumer complaints about harassment, unauthorized data access, and hidden charges. RBI's Digital Lending Guidelines (2022) mandate that all loan apps must clearly disclose the name of the regulated entity, interest rates in APR format, and provide a cooling-off period.

How to verify if your lending app is legitimate: 1. Check if the NBFC/bank name is displayed prominently in the app 2. Verify the RBI registration number on rbi.org.in 3. Legitimate lenders never ask for upfront fees before disbursal 4. Interest rates should be clearly stated before you accept the loan 5. No legitimate lender will access your photos, contacts, or social media

Platforms like GoCredit only partner with RBI-registered NBFCs and scheduled banks, ensuring every loan offer comes from a verified, compliant lender. The app displays lender credentials and FLDG details transparently.

If you've borrowed from a suspicious app, file a complaint on the RBI's SACHET portal or call the banking ombudsman helpline at 14448.