**Executive Summary**
This document is the answer to Unstarred Question No. 1307 in Lok Sabha, answered on December 8, 2025, regarding the Fair Practice Code. It addresses the number of lenders under RBI's FPC, efforts to curb unauthorized digital loan apps, and measures to verify digital lending apps. The RBI launched a directory of Digital Lending Apps (DLAs) on July 1, 2025.
**Key Points / Main Content**
* **RBI Directives and Fair Practice Code:**
* RBI issued directions for ‘Responsible Business Conduct' on 28.11.2025 to all Regulated Entities (REs).
* REs include PSBs, Private Sector Banks, Foreign Banks, Small Finance Banks, Local Area Banks, Regional Rural Banks, Payment Banks, Urban Co-operative Banks, Rural Co-operative Banks, All India Financial Institutions, and Non-Banking Financial Companies.
* REs are advised to ensure fair conduct towards customers, and the 'Fair Practices Code' has been prescribed for REs in respect of lending and recovery matters.
* **Unauthorized Digital Loan Apps:**
* Government is engaging with RBI and other stakeholders to curb unauthorized digital loan apps.
* RBI operationalized a directory ‘Digital Lending Apps (DLAs)' on its website, effective 01.07.2025, with DLAs deployed by REs of RBI.
* The directory helps customers verify a DLA’s association with a RE.
* **Blocking Unauthorized Apps:**
* The Ministry of Electronics and Information Technology (MeitY) is empowered to issue directions for blocking public access to unauthorized digital lending apps.
* This is done under Section 69A of the IT Act, 2000, following due process under the 2009 Rules.
**Impact Analysis**
**RBI Regulated Entities (REs)**
* **Impact:** REs must adhere to RBI’s directions for Responsible Business Conduct and the Fair Practices Code in lending and recovery matters.
* **Action Required:** Ensure fair conduct towards customers and comply with the Fair Practices Code prescribed by the RBI.
**Customers/Borrowers**
* **Impact:** Can verify the legitimacy of Digital Lending Apps through the RBI’s new directory.
* **Action Required:** Use the RBI directory to verify the association of a DLA with a RE before using its services.
**Ministry of Electronics and Information Technology (MeitY)**
* **Impact:** Empowered to block unauthorized digital lending apps.
* **Action Required:** Identify and block unauthorized digital lending apps following due process under the IT Act and Rules.
Key Entities Referenced
Reserve Bank of India (RBI): Issuer of directions related to 'Responsible Business Conduct' and prescriber of the 'Fair Practices Code' for Regulated Entities (REs).
Fair Practice Code: Code for lending and recovery matters, prescribed for Regulated Entities (REs) by the RBI.
Digital Lending Apps (DLAs): RBI has operationalized a directory of DLAs to help customers verify their association with a RE.
Ministry of Electronics and Information Technology (MeitY): Empowered to block unauthorized digital lending apps under Section 69A of the Information Technology (IT) Act, 2000.
Section 69A of Information Technology (IT) Act, 2000: Section under which MeitY is empowered to issue directions for blocking of information for public access.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1307
ANSWERED ON MONDAY, DECEMBER 8, 2025/ AGRAHAYANA 17, 1947 (SAKA)
Fair Practice Code
1307. SMT. RACHNA BANERJEE:
Will the Minister of FINANCE be pleased to state:
(a) the total number of registered lenders, banks and institutions on which RBI’s guidelines on Fair
Practice Code (FPC) is applicable;
(b) the total number of lenders, banks and financial institutions which have accepted RBI’s FPC
guidelines and framed their fair practice code;
(c) whether the Union Government has a white list of registered loan apps as of 2025, if so, the
details thereof and if not, the reason therefor;
(d) whether the Union Government has a banned list of personal loan apps as of 2025, if so, the
details thereof and if not, the reasons therefor; and
(e) whether the Government has taken any measures to verify digital lending apps in the country, if
so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (b): Reserve Bank of India (RBI) has issued Directions for ‘Responsible Business Conduct’ on
28.11.2025, to all Regulated Entities (REs), viz., Public Sector Banks (PSBs), Private Sector Banks
(Pvt banks), Foreign Banks (FBs), Small Finance Banks (SFBs), Local Area Banks (LABs), Regional
Rural Banks (RRBs), Payment Banks (PBs), Urban Co- operative Banks, Rural Co- operative Banks,
All India Financial Institutions (AIFI) and Non- Banking Financial Companies (NBFCs), and the REs
have been advised to ensure fair conduct towards customers. Further, ‘Fair Practices Code’ has been
prescribed for REs by the RBI in respect of lending and recovery matters.
(c) to (e): The Government has been constantly engaging with the RBI and other concerned
Regulators/stakeholders to curb the operations of unauthorized digital loan apps in the country. For
public information, RBI has operationalized a directory ‘Digital Lending Apps (DLAs)’ on its website
with effect from 01.07.2025, consisting of all DLAs deployed by REs of RBI. The directory aims to aid
the customers in verifying the claim of a DLA’s association with a RE.
In case any unauthorized digital lending apps is identified, Ministry of Electronics and Information
Technology (MeitY) is empowered to issue directions for blocking of information for public access
under Section 69A of Information Technology (IT) Act, 2000 after following the due process as
provided in the Information Technology (Procedure and Safeguards for Blocking for Access of
Information by Public) Rules, 2009.
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