1. An NBFC-P2P shall–
- act as an intermediary providing an online marketplace or platform to the participants involved in Peer to Peer lending;
- not raise deposits as defined by or under Section 45I(bb) of the Act or the Companies Act, 2013;
- not lend on its own;
- not provide or arrange any credit enhancement or credit guarantee;
- not facilitate or permit any secured lending linked to its platform; i.e. only clean loans will be permitted;
- not hold, on its own balance sheet, funds received from lenders for lending, or funds received from borrowers for servicing loans; or such funds as stipulated in paragraph 9;
- not cross sell any product except for loan specific insurance products;
- not permit international flow of funds;
- ensure adherence to legal requirements applicable to the participants as prescribed under relevant laws.
- store and process all data relating to its activities and participants on hardware located within India.
2. Further, NBFC-P2P shall-
- undertake due diligence on the participants;
- undertake credit assessment and risk profiling of the borrowers and disclose the same to their prospective lenders;
- require prior and explicit consent of the participant to access its credit information;
- undertake documentation of loan agreements and other related documents;
- provide assistance in disbursement and repayments of loan amount;
- render services for recovery of loans originated on the platform.
3. NBFC-P2P shall not undertake any activity other than those stated in paras 6(1) and 6(2) of these Directions. Deployment of investible funds by an NBFC-P2P in instruments specified by the Bank, not for trading, shall however be permitted.
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