RBI Revises Guidelines for P2P Lending Platforms on August 16, Freezing New Transactions

Aug 19, 2024, 03:53 AM

On August 16, the Reserve Bank of India (RBI) revised its guidelines for non-banking financial companies (NBFC) engaged in peer-to-peer (P2P) lending, aiming to enhance transparency and compliance. The decision follows observations of certain practices by these platforms that violated existing directions. As a result, some P2P platforms have temporarily halted new transactions and withdrawals. The Association of P2P Lending Platforms, which includes major players like Liquiloans, Lendbox, LenDenClub, and Faircent, plans to meet with the RBI to seek amendments and clarifications on the new rules.