RBI releases Consultation Paper on Peer to Peer Lending- (Reserve Bank of India) (28 Apr 2016)
MANU/RPRL/0124/2016
Banking
The Reserve Bank of India released a Consultation Paper on Peer to Peer Lending, better known as ‘crowd-funding’.
Crowd-funding typically relies on an online platform that matches lenders with borrowers to provide unsecured loans. Borrowers and lenders can be natural persons, companies or other entities.
India, at present, does not have in place a regulatory framework for Peer to Peer lending. The Paper talks of the pros and cons of regulating the sector and suggests a framework to effect the same. It also discusses capital limits, activities for which money can be lent, governance requirements, and a fair practice code.
Tags : PEER TO PEER LENDING RBI CROWD-FUNDING
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