RBI DIRECTIONS ON PEER TO PEER LENDING PLATFORMS

Published On: 01/10/2017

Authors:

Suneeth Katarki
Namita Viswanath
The Reserve Bank of India (the 'RBI') by way of a notification dated August 24, 2017, notified that a non-banking institution that carries on 'the business of a peer to peer lending platform' shall be a non-banking financial company (the 'Notification'). The RBI has issued the Notification pursuant to Section 45-I(f)(iii) of the Reserve Bank of India Act, 1934 (the 'RBI Act') which confers power on the RBI to include any non-banking institution or class of such institutions within the definition of a 'non-banking financial company' (an 'NBFC') with the prior approval of the Central Government.