RBI strict, long list of questions sent on P2P firms – RBI BECAME STRICT on P2P FIMS SENT LONG LIST of Ques

The Reserve Bank of India (RBI) has sought important information in addition to their functioning data, continuing the investigation of Peer-to-Pier (P2P) loan platforms. The RBI has taken this initiative months after the guidelines for these firms have been hardening. The central bank has asked detailed questions from 8 P2P lender Fintech firms. The banking regulator had sent a detailed questionnaire of 18 points in mid -December asking these companies to respond by 3 January. Most of these 18 points were also included in sub-ties, including the first time operational information has been sought after the P2P criteria were amended in August. Sources said that the RBI has sent a questionnaire to eight companies including Licvilons, Monxo, I2 IFNDING, IndiaP2P. Business Standard has also seen that questionnaire.

In the questionnaire, compliance with new P2P criteria, compliance with T +1 deadline, written details of the flow of money in firms, photographs of advertisements of P2P loan schemes, cross-cell details etc. have been sought. This document is different from the data that the regulator demands from every quarter companies and consisting of details of assets (AUMs), outstanding loans, gross non-performing assets, loan disbursements, etc. The founder of a P2P firm said, ‘The regulator has sought a reply to a detailed questionnaire about operations. The regulator wants to see how much has been improved in compliance levels of companies after amendment in the guidelines in August last year.

We tried to contact the management of many such such P2P firms, but no response was received. The regulator found on the revelations made on the website of these platforms that P2P of many non-banking financial companies (NBFCs) has not made public information about the damage caused by lenders on the principal or interest or both. Therefore, the regulator has asked companies to present its details.

The RBI has asked whether companies have ensured that the amount of more than T +1 is not in the Escro accounts. Also, till December 15, 2024, the details of the remaining amount in the Escro account have been sought for more than T +1. The RBI has made it mandatory in its revised guidelines that the amount invested in the escrow accounts of lenders and borrowers should not last longer than T +1. Here is the date of receiving ‘T’ amount. Companies have been asked to present their portfolio performance data up to September 2024.

In August last year, RBI was detected by a violation of regulatory guidelines by some P2P loan disbursement platform. He had said that loans were being promoted by some P2P firms as investment plans and they were working as lenders or deposits rather than a mediator offering liquidity options.

The banking regulator has also sought information in this regard how P2P loan schemes are being advertised. Is it being promoted as a loan or investment plan? Currently, 26 licensed companies are present in the P2P loan disbursement sector, but only 10–11 companies are active.

First Published – January 27, 2025 | 10:34 pm IST

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