The Reserve Bank of India has capped the permissible exposure limit of a lender on a Peer-to-Peer lending (P2P) platform for all borrowers. The aggregate exposure has been set at Rs 50 lakh at any given point of time. The step has been taken to protect the consumers interest.
The lender investing more than Rs 10 lakh across P2P platforms has to produce a certificate to P2P platforms from a practising Chartered Accountant certifying minimum net-worth of Rs 50 lakh. The central bank also stated that the “Escrow accounts” to be operated by bank promoted trustee for transfer of funds need not be mandatorily maintained with the bank which has promoted the trustee. It also mandates that all the transactions through bank accounts, and cash transaction are strictly prohibited.
Important takeaways for all competitive exams:
- RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.
Source: The Economic Times