The Impressive TimesNew Delhi : The Reserve Bank of India (RBI) has rolled out stringent guidelines to prevent malpractices and safeguard investor interests, particularly within Peer-to-Peer (P2P) lending platforms. Effective immediately, these new regulations prohibit P2P platforms from assuming any credit risk, offering credit enhancements, or providing guarantees on loans. This measure is designed to ensure that lenders on these platforms fully bear any losses on principal or interest.
The RBI’s directives also bar P2P platforms from cross-selling insurance products linked to credit enhancements or guarantees and restrict them from promoting their services as investment products. Additionally, these platforms are required to transparently disclose all potential risks and losses that lenders could face on both the principal and interest, ensuring greater transparency and protection for investors.
By implementing these regulations, the RBI aims to create a more secure and transparent environment for investors, minimizing the risks associated with P2P lending while promoting responsible lending practices across the industry.
No Comments: