1. INTRODUCTION
The Reserve Bank of India (the "RBI"), by way of a notification dated August 24, 20171, notified that a non-banking institution that carries on 'the business of a peer to peer lending platform' shall be a non-banking financial company (the "Notification"). The RBI has issued the Notification pursuant to Section 45-l(n(iii) of the Reserve Bank of India Act, 1934 (the "RBI Act"), which confers power on the RBI to include any non-banking institution or class of such institutions within the definition of a 'non-banking financial company' (an "NBFC"), with the prior approval of the Central Government.
Subsequently, the RBI, on October 4, 2017, issued the Master Directions - Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 20172 (the "P2P Directions"), for compliance by every NBFC that carries on the business of a peer to peer lending platform (a "P2P Lending Platform").
Download >> RBI Directions On Peer To Peer Lending Platforms
Footnotes
1 Notification No DNBR.045/CGM (CDS)-2017.
2 RBI/DNBR/2017-18/57, Master Director DNBR (PD) 090/ 03.10.124/ 2017-18 (Master Directions - Non-Banking Financial Company- Peer to Peer Lending Platform (Reserve Bank) Directions, 2017) is available at
https://rbidocs.rbi.orq.in/rdocs/notification/PDFs/MDP2PB9A1F7F3BDAC463EAF1 EEE48A43F2F6C.PDF.
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