Our special correspondent:Eastern Chronicle, 24×7. The 17th August 2024.
Reserve Bank of India, the Central Bank, bars NBFC P to P platforms, throughout Lending. aaaThe Central Bank of India, tightened some rules ®ulations about lendings.
Enhance transparency and compliances, the New Guidelines prohibited to Non Banking Financial Corporations (NBFCs) to lend, giving Assured Returns, & cross-selling of enhanced products by these platforms. . An observation in certain P 2 P ( peer to peer) stake holders doesn’t follow the ‘existing Rules & Regulation
A peer to peer, platform should not promote p 2 p lending as an investment products, with features like tenure- linked assured minimum returns, Liquidity options etc.
RBI specifically mentioned that, NBFC-P 2 P platforms shall not provide or arrange any credit enhancement OR any credit gurantees.
NBFC P 2 P shall not assume any credit risks, either directly or indirectly, arrising out of any transactions, carried out on it’s platforms
In other words, entire loss of the principals, or interests or both, if any, in respect of funds lent by lenders to borrowers, on the platforms, shall be borne by the Lenders and adequate disclosure of the effects, shall be made to Lenders, as part of FAIR PRACTICES CODE. -elaborately added by RBI.
NBFC- P 2 P shall not cross sell any type of Insurance products.
The RBI, imposed a cap on aggregate exposure of a Lender to all borrowers across all P 2 P platforms, Limiting it to ₹50 Lakhs.
In case, the amount Lent more than ₹ 10 Lakhs by a Lender across any P 2 P platforms, should produce certificate from practicing Chattered Accountants certifying minimum ₹ 50 Lakhs Net-worths , RBI guided.
No loan shall be disbursed unless, lenders and borrowers shall matching/mapping as per NBFCs Boards Approval.
