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ARTICLE · 03 NOVEMBER 2017

RBI Issues Directions On Peer To Peer Lending Platform

Clyde & Co
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Online lending transactions are in their nascent stage in India and given the increase in peer to peer lending through e-commerce marketplace it is of extreme importance to regulate e-lending transactions.

IndiaFinance and Banking
Vineet Aneja
Vineet Aneja
Abhishek Singla
Abhishek Singla
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Online lending transactions are in their nascent stage in India and given the increase in peer to peer ("P2P") lending through e-commerce marketplace it is of extreme importance to regulate e-lending transactions. Accordingly, the Reserve Bank of India ("RBI") has recently issued Master Directions – Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 ("Directions") so as to regulate a company which carries on the business of P2P lending platform ("P2P Lending Platform") in India. These Directions follow consultation paper released by RBI on P2P lending and decision of RBI to regulate P2P Lending Platform as Non-Banking Financial Company. Currently, the P2P lending space is populated by more than thirty (30) players including Faircent, LendBox, LenDenClub, IndiaMoneyMart, Monexo, Rupaiya Exchange which would now be regulated by RBI.

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