Directions by RBI for P2P Lending Platforms

Directions by RBI for P2P Lending Platforms

RBI issued a notification on 23/12/2019 providing the direction for all Peer-to-Peer lending platforms by Non-banking financial institutions (NBFC’s).

To get through all the master directions circulated by the apex banking body to all P2P lending platforms in 2017.

Review of master direction as updated by RBI.

  • Maximum exposure of a lender on all P2P lending platforms to all borrowers must not exceed INR 50 lakh.
  • Lender must have a certificate from a practicing chartered accountant verifying its net worth to be atleast INR 50 lakh if he/she is investing more than INR 10 lakh on any P2P lending platform.
  • A written declaration must be submitted by the lender that he adheres to all the terms and condition, risk associated with the P2P lending.
  • The bank with which Escrow account is associated for transfer of funds need not be the same trustee as promoter.