Alerts & Updates 9th May 2025
The Reserve Bank of India has issued the Digital Lending Directions, 2025 (dated May 8, 2025), consolidating and replacing its earlier guidelines of September 2022 and June 2023, including the framework on Default Loss Guarantee (DLG/FLDG).
These Directions form a unified regulatory regime governing digital lending, including detailed provisions on RE–LSP arrangements, DLG limits, customer protection norms, data governance, and KFS/APR disclosures. Notably, DLG arrangements remain capped at 5% of the underlying loan portfolio and must be supported by enforceable contracts, without impacting NPA recognition or capital treatment. This update provides a summary of the Guidelines.
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