December 01, 2024 22:05 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Ex-BCCI Secretary Jay Shah takes charge as ICC chair today | 5 killed, several injured as bus plunges into Teesta River on Bengal-Sikkim border | Delhi: Man throws liquid on Arvind Kejriwal, detained | Days after jailing Chinmoy Krishna Das, another Hindu priest arrested in Bangladesh | Anti-national activities exposed?': BJP slams TMC after husband of Mamata's leader arrested with dangerous nuclear materials
Reserve Bank tightens norms for NBFC P2Ps

Reserve Bank tightens norms for NBFC P2Ps

| @indiablooms | 17 Aug 2024, 01:39 am

Mumbai: The Reserve Bank tightened regulations for Non-Banking Financial Company - Peer to Peer Lending Platforms (NBFC-P2P) to enhance transparency and ensure better compliance.

According to the updated master direction from the RBI, P2P platforms are now prohibited from promoting peer-to-peer lending as an investment product featuring assured minimum returns linked to tenure or liquidity options.

Additionally, NBFC-P2P platforms are barred from cross-selling any insurance products that serve as credit enhancement or guarantees.

The guidelines also stipulate that no loan can be disbursed unless lenders and borrowers are matched or mapped according to a board-approved policy.

While the RBI initially issued guidelines for P2P lending in 2017, it has recently identified certain non-compliant practices by some platforms that violate these regulations.

"Such practices include, among others, violation of the prescribed funds transfer mechanism, promoting peer-to-peer lending as an investment product with features like tenure linked assured minimum returns, providing liquidity options and at times acting like deposit takers and lenders instead of being a platform," it said.

In view of violations by some entities, the RBI issued amended guidelines. The revised guidelines come into effect immediately.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.