New Delhi: Serious allegations have surfaced that Non-Banking Financial Companies (NBFCs) providing digital loans are violating the right to privacy by leaking the personal data of borrowers. Hearing a Public Interest Litigation (PIL) filed in this regard, the Delhi High Court on Wednesday issued a notice to the Reserve Bank of India (RBI) seeking an explanation.
Key Questions from the Court:
The bench, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, issued the following directions to the RBI:
* Implementation of Guidelines: Have the guidelines issued in 2025 regarding digital lending been properly implemented? A report on this must be submitted within six weeks.
* Actions Taken: Information must be provided regarding what actions the RBI has taken against entities in cases where rules were violated. Lenovo Idea Tab Plus with Pen |Wifi + 5G|12.1" 2.5K Display, 800nits Peak Brightness|12GB RAM + 256GB ROM (Expandable upto 2TB)|MediaTek Dimensity 6400| 10200mAh|4 Speakers with Dolby Atmos| Luna Grey
What are the Primary Allegations in the Petition?
1. Data Theft: Several lending apps available on the Play Store and App Store are disregarding RBI rules to collect users' personal information (such as Contacts, Photos, etc.).
2. Forced Consent: Users are being forced into giving digital consent at the time of granting loans.
3. Violation of Regulations: Despite the RBI issuing statutory guidelines, companies have failed to maintain data security and an effective grievance redressal system.
Demands of the Petitioner:
The licenses of NBFCs* and digital lending platforms that violate rules must be canceled or suspended immediately.
* The Central Government and the RBI must take steps to remove applications that do not comply with the guidelines from the Google Play Store and Apple App Store.
Next Hearing: The court has scheduled the next hearing for this case on April 1. There is now widespread curiosity about how the RBI will crack down on institutions that infringe upon the privacy of the common public in the name of digital loans. Also read: Health Benefits of Eating Almonds Daily: From Heart and Brain Protection to Radiant Skin..!