New Delhi: The Reserve Financial institution has tightened norms for non-banking monetary firm – peer to see lending platforms (NBFC-P2P lending platforms) to enhance transparency and compliance. In accordance with the revised grasp course issued by the RBI, P2P platforms mustn’t promote peer-to-peer lending as an funding product.
It ought to have options like period-linked assured minimal returns, liquidity choices and many others. Additionally, it features a ban on mortgage escalation and limiting the overall publicity to Rs 50 lakh.
RBI pointers
- In accordance with the RBI, the NBFC-P2P lending platform ought to act as an middleman offering an internet market to the contributors in P2P loans. The regulator has added new provisions to the grasp instructions which can come into drive in three months.
- As per the brand new pointers, such platforms are prohibited from offering enhancement or assure, and any lack of principal or curiosity needs to be borne by the lender, requiring correct disclosure.
- Non-Banking Monetary Firm – Peer to Peer Lending Platform (NBFC-P2P Lending Platform) also needs to not cross-sell any insurance coverage product which is within the nature of credit score enhancement or credit score assure.
- No mortgage needs to be disbursed except matching/mapping of lenders and debtors is finished as per the Board authorized coverage.