Technological advancements have considerably aided digital lending. Individuals can get cash infusions from digital lenders. The demand for online loans has skyrocketed in recent years. The Reserve Bank of India (RBI) has issued Digital Lending Guidelines for all commercial and cooperative banks, as well as NBFCs. Regulated entities (REs) are responsible for ensuring that Lending Service Providers ("LSPs"), Digital Lending Apps ("DLAs"), and LSP DLAs comply with the Guidelines. The REs include all commercial and cooperative banks, as well as non-banking financial institutions. On behalf of the RE, the LSP handles lender tasks such as customer acquisition, monitoring, and recovery. DLAs are websites or mobile applications that provide loans to their customers; this covers both RE applications and the LSP for the credit facility. 1. Loan Disbursal Directly to borrowers Account To promote transparency and avoid operational ambiguity, REs must ensure that loan dis