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How RBI’s Guidelines Will Impact P2P Lending
October 10, 2017
This Wednesday, the Reserve Bank of India released the guidelines for the regulation of the Peer-to-Peer (P2P) platforms by granting them recognition as Non-Banking Financial Companies (NBFCs).
The central bank said that even though the P2P platforms are not significant in value, they can disrupt the financial sector and “throw up surprises”.
The following is the criteria set by the RBI for the P2P-NBFCs:
- They must have a capital of minimum Rs. 2 crore
- They will perform risk profiling of their borrowers and lenders
- They will maintain documents pertaining to loan agreements
- They can’t hold funds or balance sheets
- They can’t cross-sell products, save for certain insurance products
- They can’t take loan exposure themselves
