In the wake of a recent directive from the Reserve Bank of India (RBI), Peer-to-Peer (P2P) lending platforms are making significant strategic shifts. According to a recent article on Financial Express, Sunayana Basu Mallik highlighted a crucial aspect of this development.
Quoting Sunayana Basu Mallik: "During its audit inspections, the RBI has identified and emphasized instances where certain products violate licensing conditions. The RBI advocates for P2P startups to confine their operations to facilitating connections between lenders and borrowers exclusively."
This statement underscores the importance of regulatory compliance in the rapidly evolving landscape of P2P lending. The RBI's scrutiny has led to a reevaluation of business models, pushing P2P platforms towards a focus on fixed tenure products.
