Delhi HC Demands RBI Response on Digital Lending Data Violations by NBFCs

• The Delhi High Court has sought a response from the RBI regarding alleged data rights violations by NBFCs operating digital lending applications.
• A division bench of Chief Justice DK Upadhyaya and Justice Tejas Karia examined the regulatory framework for digital lending.
• The court noted RBI's 'Digital Lending Directions, 2025' apply to digital lending by banks, aiming to curb data misuse and provide grievance redressal.
• RBI was directed to file a counter affidavit detailing enforcement actions and steps taken against violators of the 2025 guidelines.
• The central bank has been granted six weeks to submit its response, addressing data privacy and regulatory oversight in the digital lending ecosystem.

Why It Matters: Delhi HC pushes RBI for accountability on digital lending data privacy and enforcement of 2025 guidelines.