RBI classifies P2P lending firms as NBFCs

NOTIFICATION

No. DNBR. 045/CGM (CDS)-2017.—The Reserve Bank of India, on being satisfied that it is necessary to do so, in exercise of the powers conferred on it by sub-clause (iii) of clause (f) of Section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) with the prior approval of the Central Government, hereby, specifies a non-banking institution that carries on ‘the business of a peer to peer lending platform’ to be a Non-Banking Financial Company.

For the purpose of this notification, the term “the business of a peer to peer lending platform” shall mean the business of providing under a contract, the service of loan facilitation, via online medium or otherwise, to the participants who have entered into an arrangement with that platform to lend on it or to avail of loan facilitation services provided by it.

Reserve Bank of India

(Department of Non-Banking Regulation)

Join the discussion

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.