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).
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.