Master Directions for Non-Banking Financial Company – Peer to Peer Lending Platform
The Reserve Bank of India (RBI) has issued master directions for Non-Banking Financial Company – Peer to Peer Lending Platform (NBFC-P2P).
The directions are applicable to all NBFC-P2Ps, and their scope includes providing a platform for lending and borrowing activities.
The directions define various terms, including NBFC-P2P, lender, borrower, and loan.
For registration, NBFC-P2Ps must meet eligibility criteria, including having a minimum net owned fund of ₹2 crore.
The registration process involves submitting an application to the RBI, and existing NBFC-P2Ps must also comply with the directions.
Investments from FATF non-compliant jurisdictions are not permitted.
NBFC-P2Ps can only engage in lending and borrowing activities, and must comply with prudential norms, including capital adequacy and liquidity requirements.
They must also declare dividends, providing details of the dividend declared during the financial year.
Key Requirements:
Minimum net owned fund of ₹2 crore
No investments from FATF non-compliant jurisdictions
Compliance with prudential norms and capital adequacy requirements
Declaration of dividends with details
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