The central financial institution additionally stated an NBFC-P2P can’t utilise funds of a lender for substitute of every other lender(s). Presently, there are 26 NBFC-P2P lending platforms in India.
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These aforementioned directives come as a few of these platforms have adopted sure practices that are violative of its 2017 Grasp Instructions NBFC-P2P lending platform.
Such practices embody, amongst others, violation of the prescribed funds switch mechanism, selling P2P lending as an funding product with options like tenure linked assured minimal returns, offering liquidity choices and at occasions performing like deposit takers and lenders as an alternative of being a platform.
Such violations, when noticed, have been handled bilaterally by the RBI for remediation.
The RBI emphasised that the pricing coverage ought to be goal and an NBFC-P2P ought to disclose the charges liable to be charged, ab initio, that’s on the time of lending itself.
The charges ought to be a set quantity or a set proportion of the principal quantity concerned within the lending transaction. The charges can’t be dependent upon the reimbursement by the borrower(s).
The RBI underscored that the follow of matching/ mapping the individuals inside a closed consumer group, whether or not sourced by means of an outsourced company or in any other case, just isn’t permitted.
Examples of ‘closed consumer group’ embody debtors/lenders sourced by means of an affiliate/service supplier to the NBFC-P2P.
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Total lack of principal or curiosity or each, if any, in respect of funds lent by lenders to debtors on the platform needs to be borne by the lenders and ample disclosures to this impact needs to be made to lenders as a part of truthful practices code.
An NBFC-P2P can solely cross-sell mortgage particular insurance coverage merchandise. It can’t cross-sell any insurance coverage product which is within the nature of credit score enhancement or credit score assure.
The combination publicity of a lender to all debtors at any level of time, throughout all P2P platforms, will proceed to be topic to a cap of ₹50 lakh supplied that the quantity lent by the lenders on P2P platforms is in line with their networth.
Additional, in case, the quantity lent by a lender is greater than ₹10 lakh throughout P2P platforms, the lender has to provide a certificates to P2P platforms from a training Chartered Accountant certifying minimal net-worth of ₹50 lakh.
NBFC-P2P lending platforms must explicitly and prominently point out their identify (as talked about within the Certificates of Registration) together with their model identify, if any, in all their contact factors/ buyer interfaces together with promotional materials and any communication with stakeholders/ individuals.
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