A peer-to-peer lending platform must register with the Reserve Bank of India as an NBFC-P2P under the Master Directions for Peer to Peer Lending Platforms. The platform acts only as an intermediary: it cannot lend on its own account, must route funds through escrow accounts managed by a bank-promoted trustee, and must follow lender and borrower exposure caps.
Eligibility
- Company incorporated in India
- Net owned fund as prescribed by RBI
- Fit and proper promoters and directors
- Robust technology and data security
Operating rules
- No lending or borrowing on the platform's own balance sheet
- No credit guarantees to lenders
- Funds through escrow accounts
- Aggregate exposure caps per lender and borrower
- Credit assessment and disclosures to lenders
Registration process
Apply to RBI with the business plan, technology details and promoter information. RBI may grant in-principle approval, after which the platform must set up systems before final registration.
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Periodic returns to RBI, fair practices, grievance redressal, credit bureau reporting and cyber security norms apply.
Frequently asked questions
Can a P2P platform guarantee returns?
No. RBI prohibits P2P platforms from guaranteeing returns or principal to lenders.
Can individuals lend on P2P platforms?
Yes. Individuals and entities can lend within exposure caps set by RBI, subject to platform onboarding and KYC.
How long does NBFC-P2P registration take?
It generally takes several months, including in-principle approval and system readiness.
Can a P2P platform cross-sell other products?
RBI directions restrict P2P platforms from cross-selling products other than loan-specific insurance.
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