New Delhi, Jan. 14 -- India's new data protection regime makes a seemingly simple promise: if an app can take consent in a tap, it must allow users to withdraw it just as easily. But in digital lending-where loans are priced, monitored and sometimes recovered using a steady stream of personal data-that promise is already running into the realities of regulated credit. With their practices upended, the industry is seeking some leeway.

As the Digital Personal Data Protection (DPDP) Act nears full implementation, the industry is pushing back on a few key clauses in the Act. Two people familiar with the discussions said the Fintech Association for Consumer Empowerment (Face), a Reserve Bank of India (RBI)-recognized self-regulatory organizat...