Category: Personal Loan Written by: Kissht Editorial Team Posted: March 30, 2026 Updated: May 2026 Reading time: 8 mins
Digital lending has transformed how individuals access credit in India. Mobile apps offering quick approvals and minimal documentation have made borrowing faster than ever. However, this rapid growth also brought concerns around transparency, data privacy, and borrower protection — leading to a wave of fraudulent and unregulated lending apps.
To address this, the Reserve Bank of India issued the RBI Digital Lending Directions, 2025 — a comprehensive regulatory framework that governs all digital lending activities carried out by banks, NBFCs, and fintech platforms. Any loan app operating in India must comply with these directions or risk being declared illegal.
This guide explains what these guidelines mean for borrowers, what protections they provide, and how to verify whether an app you are using is genuinely compliant.
In 2025, the RBI consolidated and updated its digital lending framework through the Reserve Bank of India (Digital Lending) Directions, 2025. Key updates include:
These updates mean borrowers now have a reliable, official way to verify whether a loan app is genuinely RBI-linked.
How to verify: Visit rbi.org.in → NBFC section → check the registered DLA list, or look for the NBFC name and Certificate of Registration (CoR) number in the app's footer.
The RBI Digital Lending Directions serve four core purposes:
Borrower Protection — Ensure borrowers are not misled, overcharged, or harassed during loan recovery.
Data Privacy and Security — Protect personal and financial data shared during the loan application process. Apps can only collect data strictly necessary for loan processing.
Transparency in Loan Terms — All charges, interest rates, and conditions must be clearly communicated before any loan is disbursed.
Regulation of Digital Lending Platforms — Only entities operating through RBI-registered NBFCs or banks can legally offer digital loans.
Loan disbursals must be made directly to the borrower's registered bank account — no pass-through accounts, no third-party wallets, no cash. This ensures complete transparency and prevents misuse of funds.
What this means for you: If a loan app asks you to receive your loan in a third-party wallet or via UPI to an individual, it is operating outside RBI rules.
Before any loan is finalised, the lender must provide a Key Fact Statement (KFS) in a standard format. This document must clearly state:
Lenders cannot charge any fee or penalty not mentioned in the KFS. No hidden charges are permitted.
Every borrower must be given a cooling-off period after loan disbursement, during which they can exit the loan by repaying only the principal and applicable interest — without any prepayment penalty. This gives borrowers a safety net if they change their mind.
Lenders cannot increase your credit limit without your explicit consent. Any unsolicited credit limit enhancement is a violation of RBI Digital Lending Directions. Borrowers are protected from unknowingly taking on more debt.
Loan apps that are not themselves NBFCs must partner with an RBI-registered NBFC or bank. The regulated entity remains fully responsible for the loan — not just the app interface. The NBFC's name and CoR number must be visible in the app.
Every RBI-compliant lending platform must appoint a Grievance Redressal Officer whose name and contact details are accessible to all borrowers. If you have a complaint about a digital loan, you can escalate directly to this officer — and if unresolved, to the RBI Ombudsman.
Data misuse by loan apps has been a major issue in India. The RBI Digital Lending Directions impose strict rules:
Limited Data Access — Loan apps can only collect data strictly necessary for loan processing. Accessing your contacts, photos, or location without justification is prohibited.
Explicit User Consent — Borrowers must provide clear, informed consent before any personal data is shared with third parties.
Restriction on Data Misuse — Sensitive data cannot be used for purposes unrelated to the loan. Sharing borrower data with unauthorised third parties is a direct violation.
No Contact Harassment — Recovery agents cannot contact borrowers' family members, colleagues, or use intimidation. All recovery must follow RBI's Fair Practices Code.
Red flag: If a loan app accesses your contact list or threatens to share your data — report it immediately to the RBI via the Sachet portal (sachet.rbi.org.in).
Kissht (operated by OnEMI Technology Solutions Limited) is fully compliant with RBI Digital Lending Directions, 2025. Here is exactly how each guideline is followed:
| RBI Requirement | How Kissht Complies |
|---|---|
| Direct disbursal to bank account | All loans credited directly to borrower's registered bank account |
| Key Fact Statement before disbursal | KFS provided before every loan is finalised |
| No hidden charges | Full APR, processing fees, and GST disclosed upfront |
| Cooling-off period | Available to all Kissht borrowers per RBI norms |
| No unsolicited credit limit increase | Credit limit changes require explicit borrower consent |
| Grievance Redressal Officer | Accessible via [email protected] and 080 44745884 |
| RBI-registered NBFC partnerships | Operates through RBI-registered NBFC Partner |
| Data privacy | Only PAN, Aadhaar, and selfie collected — no contact list access |
Kissht serves over 11 million customers with an AUM of ₹5,900 Crore+ and disburses loans in as fast as 5 minutes — fully within the RBI Digital Lending framework.
Before applying for any loan, run through this quick checklist:
Step 1 — Find the NBFC name Look in the app's footer or "About" section. The NBFC partner name must be clearly visible. If it is absent — do not proceed.
Step 2 — Verify on RBI's official website Visit rbi.org.in → NBFC section → search the NBFC name. Alternatively, check the RBI's updated DLA list on the CIMS portal.
Step 3 — Check for KFS before loan acceptance A compliant app will show you a Key Fact Statement with APR, fees, and repayment schedule before asking you to sign. If no KFS appears — the app is non-compliant.
Step 4 — Verify the developer on Google Play The developer should be a registered company with 10,000+ reviews and a working website — not an individual or newly created account.
Step 5 — No upfront fees RBI-compliant lenders deduct processing fees from the disbursed amount. They never ask for advance payment before releasing the loan.
Report suspicious apps to: sachet.rbi.org.in or the RBI Ombudsman.
| Benefit | What It Means |
|---|---|
| Increased transparency | Full loan cost disclosed before acceptance — no surprises |
| Data protection | Apps cannot misuse your personal information |
| Better control | Cooling-off period lets you exit if needed |
| No hidden charges | Only fees listed in KFS can be charged |
| Legal recourse | Grievance officer + RBI Ombudsman available |
| Verified app list | RBI's CIMS portal lets you check any app's legitimacy |
The RBI (Digital Lending) Directions, 2025 is the latest consolidated regulatory framework issued by the Reserve Bank of India governing all digital lending in India. It requires all loan apps to operate through RBI-registered NBFCs, provide a Key Fact Statement before disbursal, report their apps on the RBI's CIMS portal, and follow strict data privacy rules.
Yes. Kissht operates through RBI-registered NBFC Partner and fully complies with RBI Digital Lending Directions, 2025. All loans are disbursed directly to borrowers' bank accounts, a KFS is provided before every loan, and a Grievance Redressal Officer is accessible to all customers.
Yes. Any loan app operating in India must be linked to an RBI-registered NBFC or bank. The RBI now maintains an updated list of verified Digital Lending Apps (DLAs) on its CIMS portal, which borrowers can check before applying.
A Key Fact Statement (KFS) is a mandatory document that every RBI-compliant lender must provide before finalising a loan. It includes the Annual Percentage Rate (APR), processing fees, repayment schedule, grievance officer details, and the cooling-off period. No charges outside the KFS can be levied.
A cooling-off period is a window after loan disbursal during which a borrower can exit the loan by repaying only the principal and applicable interest — without any prepayment penalty. This is mandatory under RBI Digital Lending Directions.
Visit the RBI's Sachet portal at sachet.rbi.org.in to report unauthorised or fraudulent digital lending apps. You can also escalate unresolved complaints to the RBI Ombudsman.
Visit rbi.org.in, go to the NBFC section, and check the registered Digital Lending Apps (DLA) list on the CIMS portal. Alternatively, search for the app's NBFC partner name and verify its Certificate of Registration (CoR) number.
The RBI can cancel the NBFC's Certificate of Registration, impose penalties, and direct the entity to cease operations. Borrowers can also seek legal recourse through the RBI Ombudsman.