Explorer

Peer to peer lending now needs NBFC registration

New Delhi [India], Oct 13 (ANI-NewsVoir): Finally, after more than one year of uncertainty about peer-to-peer lending startups regulations. The Reserve Bank of India (RBI), in a gazette notification, stated that after confirming its necessity, peer-to-peer lending startups have been identified as a special group of non-banking finance companies (NBFCs) by the central bank and that the banking regulator will be responsible for regulating it.

With this notification, RBI's final guidelines on P2P lending will be released and the entities managing the platforms will be licensed to complete such transactions.

RBI executive director, Sudarshan Sen, made a public statement last month that, the regulator was waiting for the central government's gazette notification before releasing the guidelines.

Apart from helping these startups raise organized funding, this announcement also means that the central government has come to the realization that P2P lending platforms have a vital role to play when it comes to bridging the country's financial needs.

Narendra Kumar, Who heads Fintech Advisory Division at Enterslice said, "As P2P Lending was unorganised sector, trust was a key issue with many Investors. And the industry was growing very slowly with no major VC funding happening in this Industry, Now with this new regulation confidence of Investors in P2P Lending Platforms with increase and Industry can see double digit growth. "

This move will also help achieve the government's dream of facilitating financial inclusion through greater credit access for small and micro enterprises, which till now were either denied access or were under-served by the traditional financial institutions.

Peer-to-peer lending is an online platform that links lenders to borrowers. They use algorithms to help lenders decide on a borrower's credit worthiness and ensure quick loan disbursal with reasonable interest rates.

Startups will get time to do all the necessary filings and obtain NBFC Registration. RBI is yet to announce the deadlines for completing compliance of existing P2P Lending Companies. (ANI-NewsVoir)


This story has not been edited. It has been published as provided by ANI

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

Lok Sabha Polls: Congress CWC Meeting Begins, Likely To Release Manifesto Today
Lok Sabha Polls: Congress CWC Meeting Begins, Likely To Release Manifesto Today
Supreme Court To Hear Batch Of  Pleas Today Seeking Stay On Implementation Of CAA Rules
Supreme Court To Hear Batch Of Pleas Today Seeking Stay On Implementation Of CAA Rules
Delhi Excise Policy Case: K Kavitha Conspired With CM Kejriwal, Sisodia For Favours, Claims ED
Delhi Excise Policy Case: K Kavitha Conspired With CM Kejriwal, Sisodia For Favours, Claims ED
'Modi Violated Lok Sabha MCC': TMC Alleges PM Campaigning For BJP Using Govt Money
'Modi Violated Lok Sabha MCC': TMC Alleges PM Campaigning For BJP Using Govt Money
Advertisement
for smartphones
and tablets

Videos

Electoral Bonds Case: By When Will The Parties Enjoy Donation Benefits? | ABP NewsElectoral Bonds Case: Will The Reality Behind Donations Be Out Soon? | ABP NewsElectoral Bonds Case: Will State Bank Of India Provide Supreme Court With Data? | ABP NewsElectoral Bonds Case: Is This The Matter Of Donation Or Some Electoral Power? | ABP News

Photogallery

Embed widget