Scope of Activities of an NBFC-P2P

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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Thus, take a step forward to open the door for the new FDI norms.

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Why not give them a call right now at +91 9911222771 and start a conversation immediately.

By | 2018-01-23T17:23:39+00:00 November 10th, 2017|Micro Financing|0 Comments

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