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

Reserve Bank of India (Non-Banking Financial Companies - Peer to Peer Lending Platform) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/370 DOR.FIN.REC.No.289/03.10.124/2025-26

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Peer-to-Peer Lending Platform) Directions, 2025, effective from 28th Nov 2025.

Key Highlights of the Directions:
- Fair lending practices: The guidelines aim to create a framework for fair lending, borrower protection, and effective risk management.
- Escrow accounts: To mitigate risks and prevent money laundering, the guidelines mandate the use of an escrow account for all fund transfers between lenders and borrowers.
- Lender and borrower limits:
a. A lender can provide financial assistance of a maximum of Rs. 50 lakh across all P2P platforms.
b. Lenders cannot provide more than Rs. 50,000 to the same borrower at any time.
c. The maximum loan amount a borrower can take from P2P platforms is Rs. 10 lakh.
- Platform operations:
a. P2P lending platforms are prohibited from acting as deposit takers or lenders.
b. They cannot guarantee returns or offer liquidity options.
c. Platforms must display a prominent disclaimer stating that the RBI does not guarantee the repayment of loans lent on the platform.
- Risk management: The directions include provisions for due diligence of borrowers, capping the aggregate exposure for lenders, and managing the aggregate loans for a single borrower to minimize misuse of the platform.

For more information, kindly refer to the attached document.

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