RBI Directs Banks, REs To Submit Digital Lending App Information On CIMS Portal

The Reserve Bank of India (RBI) has issued the Digital Lending Directions, 2025 to regulate digital lending practices by regulated entities (REs) which include banks. These regulations consolidate and streamline several present instructions bringing them under a unified regulatory framework to increase transparency and control in the rapidly increasing digital lending industry.

The newly issued directions introduce key measures aimed at increasing transparency and accountability in the digital lending space. The requirement that REs ensures increased in transparency in the combination of loan products from many lenders is one of the significant additions. This requires the need to make terms and conditions transparent as well as easy to understand in order for borrowers to make authentic and right decisions. This is a way to enhance consumers awareness so that they are not misled or confused while selecting loan options.

Another significant change is the introduction of a Public Directory for Digital Lending Apps (DLAs). According to the new requirements, REs must provide information on their digital lending apps through the Centralized Information Management System (CIMS) portal, which will be available for reporting beginning May 13, 2025. The entities must upload their initial data by June 15, 2025.

The RBI has stated that the list of Digital Lending Apps (DLAs) will be made available on its website to help consumers verify their association with Regulated Entities (REs). The list will be based on data submitted by REs via the CIMS portal and will be updated automatically as REs make changes, such as the addition of new DLAs or deletion of existing ones.

The steps mentioned in these Directions aim to improve openness and accountability in the digital lending industry. These measures are intended to protect customers, encourage responsible lending, and contribute to the establishment of a more organized and open digital credit market.

By taking these new steps, the RBI is strengthening its oversight of the industry, safeguarding consumers from dishonest practices and promoting responsible online lending.