The Delhi High Court on Wednesday flagged concerns over data privacy practices in the digital lending space and sought responses from the Reserve Bank of India and the Centre on a public interest litigation alleging violations by Non-Banking Financial Companies (NBFCs) operating digital lending applications. “We require the RBI to file a counter affidavit in respect of the averments in the petition and also action taken for the enforcement of the 2025 (digital lending) guidelines. The counter affidavit filed by RBI shall discuss action taken by concerned authorities in case of violation of these directions,” the court ordered. The petitioner further told the court that she had submitted a detailed complaint to the RBI in November 2025, flagging specific violations by digital lending platforms, but no action followed. The PIL seeks directions to the RBI to take time-bound action against entities operating in breach of the guidelines.

Source: The Telegraph January 07, 2026 12:19 UTC