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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI - FAQs on Non-Banking Financial Company - Peer to Peer Lending Platform

03-Sep-2025 | NA

Reserve Bank of India (RBI) has issued FAQs on Non-Banking Financial Company - Peer to Peer Lending Platform.

Key Highlights of the FAQs:
1. Definition of Person - It includes individuals, firms, societies, HUFs, and other incorporated or unincorporated bodies, but not banks/NBFCs.
2. Applicability of P2P Directions - Platforms that only help banks/NBFCs find borrowers are not P2P platforms. If retail lenders also use the platform, it must register as an NBFC-P2P.
3. Capital & Registration - To apply for an NBFC-P2P license, promoters must show a minimum net owned fund (NOF) of Rs. 2 crores before the Certificate of Registration are granted. Existing NBFCs cannot directly operate as NBFC-P2Ps.
4. Leverage & Investible Funds - Leverage ratio is calculated using outside liabilities divided by owned funds. Investible funds include only own capital and surplus of the company, not customer funds.
5. Fund Transfers (T+1 Rule) - All disbursals and repayments must go through verified bank accounts via escrow accounts of lenders and borrowers. Transfers must be completed within T+1 bank working day.
6. Compliance & Safeguards - NBFC-P2Ps must ensure that only verified bank accounts of registered participants are used and remain compliant with RBI rules, the Digital Personal Data Protection Act, 2023, and other applicable laws.


For more information, please refer to the attached document.

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