The Reserve Bank of India for the first time proposed rules for peer-to-peer lending, seeking to regulate a growing sector with potential measures including requiring minimum capital of Rs 2 crore or prohibiting them from promising "extraordinary returns."
The RBI also proposed on Thursday that only those defined as companies engage in peer-to-peer lending and said it may categorise firms in the growing sector as non-banking financial companies.
Peer-to-peer lending has been growing globally, including in India, where only a limited segment of the population has access to bank finance.
The central bank sought feedback to its proposals from the public by May 31.
Published Date: Apr 28, 2016 04:14 pm | Updated Date: Apr 28, 2016 04:14 pm