RBI seeks to regulate peer-to-peer platforms

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.” [caption id=“attachment_2690454” align=“alignleft” width=“380”] Reuters[/caption] 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.