RBI finalises peer-to-peer lending norms; likely in 2-3 weeks

FinMin given its comments to RBI and the latter is giving final touches to the rules

The Reserve Bank of India (RBI) has finalised norms for peer-to-peer (P2P) lending platforms and is expected to release final guidelines in 2-3 weeks, a top finance ministry official said.

According to the official, the finance ministry has given its comments to the central bank and the latter is giving final touches to the rules.

“We have given our comments to the RBI. The guidelines should be out soon. The norms will be out before July-end,” the official said.

He also said the finance ministry has recommended that these platforms be registered as non-banking financial institutions.

“P2P platform needs to be regulated by the RBI so as to ensure players play by the rule,” the official said.

According to the official, the P2P lending interface will come under the purview of RBI’s regulation by defining these platforms as NBFCs under the RBI Act by issuing a notification in consultation with the government.

The proposed regulatory framework would encompass the permitted activity, regulations on capital, governance, business continuity plan and customer interface, apart from regulatory reporting, the official added. The RBI had floated a consultation paper in April 2016 on the such lending platforms.