Premium Essay

Digital Banking

In: Business and Management

Submitted By sahillakshmanan
Words 1793
Pages 8
By BankBazaar.com

Feedback/Comments on
RBI’s Consultation paper- Peer to Peer Lending in India

The Reserve Bank of India (RBI) has initiated steps to regulate peer-to-peer (P2P) lending business. RBI has proposed registering P2P lending platforms as non-banking financial companies (NBFCs). In order to come up with the regulation RBI has sought suggestions over the consultation paper.
We have analysed the proposed regulatory framework and submit our comments
/suggestions. We request the RBI to give us an opportunity to present our views at appropriate forum or panel if they deem fit to substantiate our views.
Clause No.

Comments/suggestions

Clause 5.1- Proposal

P2P platforms are online market place and acts merely as a

to bring P2P lending

platform/intermediary between lender and borrower to facilitate

platforms under

the transaction through its technological integration. These

definition of NBFCs

platforms neither accept deposits on their balance sheets nor do

under section 45I (f)

they engage in proprietary lending. There activity should not be

(iii) of the RBI Act

termed as ‘financial’ per se. P2P platforms are non-banking and non-financial companies and therefore the proposal or need to bring them under the definition of NBFCs under section 45 I (f) (iii) may kindly be reviewed.

Clause 5.2- RBI to

Online platform is only a market place facilitating the sale of

issue registration

financial products and do not accept any deposit from public.

requirement for

Further, being a market place these platforms also facilitates the

such platforms

sale of other financial products (like bank loans, credit cards, insurance and mutual funds). Owing to the fact that these platforms operates in an advanced technological environment and host all financial products, it is possible to regulate them for...

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