RBI raises P2P lending limit five-fold, cap on single-party exposure stays

Apex bank also does away with requirement of escrow accounts run by a bank-promoted trustee for transfer of funds

The Reserve Bank of India has raised the lending limit of Peer-To-Peer (P2P) platforms five-fold. The apex bank said in a statement on developmental and regulatory policies issued on December 5, that the aggregate exposure of a lender to all borrowers at any point of time, across all non-banking financial company peer-to-peer platforms, will be capped at Rs 50 lakh, against Rs 10 lakh at present.

It said, “A review of the functioning of the