RBI regulations for Peer-to-Peer lending platforms

This week we are going to tell you a little more about the Reserve Bank of India’s move to regulate the Peer-to-Peer (P2P) lending platforms. The RBI came out with a set of regulations on the 4th of October 2017. A few key points are as below,

  • All peer-to-peer (P2P) lending platforms will have to receive a license as an NBFC-P2P (a new category of NBFCs)
  • The central bank has specified that the maturity of the loans must not exceed 36 months
  • The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, would be subject to a cap of INR 10 lakhs
  • The exposure of a single lender to the a single borrower, across all P2Ps, must not exceed INR 50,000
  • An NBFC-P2P needs to have a net owned fund of at least INR 2 crores
  • The NBFC-P2P cannot permit international flow of funds
  • The NFBC-P2P must store and process all data relating to its activities and participants only on hardware located within India


For more details, you can visit the RBI website.