Delhi High Court to RBI: Uphold Borrowers' Privacy Rights in Digital Lending

The Delhi High Court demanded a response from the Reserve Bank of India regarding a PIL alleging privacy violations by NBFCs through digital lending apps. The PIL, filed by Himakshi Bhargav, claims these apps collect excessive data and employ coercive consent methods, violating RBI's Digital Lending Guidelines of 2025.

The Delhi High Court has called on the Reserve Bank of India to respond to allegations of privacy violations by digital lending applications used by Non-Banking Financial Companies (NBFCs). At the heart of the issue is a public interest litigation (PIL) filed by Himakshi Bhargav, which accuses these apps of breaching Reserve Bank of India's Digital Lending Guidelines, first issued in 2025.

Chief Justice D K Upadhyaya and Justice Tejas Karia have expressed significant concern over the matter, emphasizing the need for a prompt and rigorous response. The court has instructed the RBI to provide detailed commentaries on the enforcement of the guidelines and any actions taken against entities found in violation.

The PIL highlights that, despite the guidelines, certain lending apps continue to inappropriately access mobile resources, including contact lists and call logs, without adequate user consent. The plea presses for urgent intervention from the RBI to enforce compliance and protect borrowers' data privacy.

(With inputs from agencies.)