- Why in news
- On 17 March 2026, the Finance Ministry told Rajya Sabha about steps against fraudulent loan apps: RBI's digital lending guidelines, the DLA directory, blocking under IT Act Section 69A, and cybercrime reporting channels.
- What it is
- RBI's digital lending guidelines were framed after a Working Group on Digital Lending, including through online platforms and mobile apps, gave its recommendations. They bind all Regulated Entities and aim to protect borrowers in loans offered through apps. The DLA directory on RBI's website lets customers check whether an app is linked to a regulated lender.
- Origin of guidelines
- RBI set up a Working Group on Digital Lending, and its recommendations led to the guidelines.
- Who must comply
- All Regulated Entities must follow the guidelines. Compliance is checked on a sample basis in supervision, and non-compliance can draw enforcement action.
- Blocking power
- MeitY blocks fraudulent loan apps under Section 69A of the IT Act, 2000, following the 2009 blocking Rules.
- Constitutional position
- Police and Public Order are State subjects in the Seventh Schedule, so States are primarily responsible for crime prevention and prosecution.
Don’t confuse with SACHET vs National Cybercrime Portal: SACHET is a public-facing portal for complaints about illegal deposit or money collection by entities, working with State Level Coordination Committees. The cybercrime portal, run by MHA, takes cyber incident reports.
Don’t confuse with Regulated Entity vs unauthorised app: A Regulated Entity is a lender regulated by RBI. Unauthorised apps have no such link, and the DLA directory helps tell them apart.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Verifying lender links through the DLA directory reduces harassment, predatory pricing and data misuse by rogue apps.
- Combining RBI regulation, MeitY blocking and cybercrime reporting gives a multi-agency response.
Problems
- Many fraudulent apps operate from offshore entities and reappear after blocking.
- Policing is a State subject, so enforcement capacity and coordination vary.
Way forward
- Strengthen real-time coordination among RBI, MeitY, I4C and State police, and require platforms to vet loan-app advertisements.
- Expand financial and digital literacy so borrowers check the DLA directory before borrowing.
Put in your answer
Section 69A, IT Act: This is the legal basis for blocking fraudulent apps, and it is an example of balancing state power with procedural safeguards.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting regulatory topic: RBI digital lending guidelines, DLA directory from 1 July 2025, blocking under Section 69A IT Act. No fresh hook.
Worth revising until Prelims 2027: most news questions come within two years of the event.