Delhi High Court PIL: Digital Lending Apps Face Scrutiny Over Data Misuse, Privacy Violations

• Delhi High Court takes cognizance of a PIL (Himakshi Bhargav v. Union of India) against digital lending apps for alleged privacy violations.
• Apps are accused of accessing sensitive data like contact lists, call logs, and location without necessity, leading to harassment and constitutional rights breaches.
• Legal experts highlight flawed identity verification and coercive consent practices as root causes, urging stricter enforcement of RBI's Digital Lending Directions, 2025.
• The RBI Directions and DPDPA, 2023, mandate free, specific, informed, and unconditional consent, but apps often demand blanket permissions.
• Borrowers are advised to verify RBI-regulated entities, check app permissions, and report issues to RBI portals to avoid data misuse and unethical recovery tactics.

Why It Matters: Delhi High Court PIL highlights urgent need for stricter enforcement of data privacy in digital lending.