The RBI is set to crack down on P2P lending

The central bank has serious concerns about how peer-to-peer lending companies are marketing themselves and partnering with fintechs—and regulatory action is imminent.

R, the CEO of a peer-to-peer non-banking financial company, was called in a few months ago by the Reserve Bank of India to answer some questions regarding the functioning of his platform.

His company claims to have facilitated the disbursement of loans to the tune of Rs 500 crore in the last two years and has partnerships with several well-known fintech apps for sourcing both investors and borrowers. 

The primary objective of the meeting, says R, was for central bank officials to understand the technology. “They also wanted to know how we were collecting and disbursing funds on the marketplace. …

Author

Ashwin Manikandan

Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.

Writer

ashwin@mailtmc.com

Delhi