RBI has reviewed Master Direction – Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. It has been observed that some of these platforms have adopted certain practices which are violative of the said Directions. Such practices include, among others, violation of the prescribed funds transfer mechanism, promoting peer to peer lending as an investment product with features like tenure linked assured minimum returns, providing liquidity options and at times acting like deposit takers and lenders instead of being a platform.
Such violations, when observed, have been dealt with bilaterally by the Reserve Bank of India for remediation. It has been decided to elaborate and clarify certain provisions with some modifications for proper implementation of the Directions.
