The Reserve Bank of India (the "RBI"), by way of a notification dated August 24, 20171,  notified  that a non-banking institution that carries on 'the business of a peer to peer lending platform'  shall be a non-banking financial company (the "Notification"). The RBI has issued the Notification  pursuant to Section 45-l(n(iii) of the Reserve Bank of India Act, 1934 (the "RBI Act"), which  confers power on the RBI to include any non-banking institution or class of such institutions  within the definition of a 'non-banking financial company' (an "NBFC"), with the prior approval of  the Central Government.

Subsequently, the RBI, on October 4, 2017, issued the Master Directions -  Non-Banking Financial  Company -  Peer to Peer Lending Platform (Reserve Bank) Directions, 20172 (the "P2P Directions"),  for compliance by every NBFC that carries on the business of a peer to peer lending platform (a  "P2P Lending Platform").

Download >> RBI Directions On Peer To Peer Lending Platforms


 1 Notification No DNBR.045/CGM (CDS)-2017.

2 RBI/DNBR/2017-18/57, Master Director DNBR (PD) 090/ 03.10.124/ 2017-18 (Master Directions - Non-Banking Financial Company- Peer to Peer Lending Platform (Reserve Bank) Directions, 2017) is available at

https://rbidocs.rbi.orq.in/rdocs/notification/PDFs/MDP2PB9A1F7F3BDAC463EAF1 EEE48A43F2F6C.PDF.

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