Unregulated Lending including through digital lending or otherwise – Draft Bill to ban

RBI  had constituted a Working Group on Digital Lending (WGDL).   It had submitted the report and suggested various measures including legislation for banning unregulated lending.

Accordingly, the Bill is circulated by the Ministry of Finance vide Circular dated 13.12.2024 to curb unregulated lending activities.

“Unregulated lending activities” is defined to mean lending activities which are not covered under the Regulated lending activities but carried by any person whether through digital lending or otherwise which are not regulated under any other law for the time being in force.

Sub-clause (14) defines “Regulated Lending activities” means the landing activities specified under the laws of First Schedule.

In all 20 laws are defined in the First Schedule to the Bill as Regulating Lending Activities.

BULA DRAFT BILL 13 12 24.pdf