FinTechCompliances under NBFC (P2P) Direction, 2017-V

May 7, 20210

In the quest of  V series on Digital Lending, we are taking up finally on compliances under NBFC(P2P).

Compliances under NBFC (P2P) Direction, 2017

They are required to comply with certain conditions such as –

a. It should be a company incorporated in India and should have the required technological, entrepreneurial and management resources to serve its users.

b. It should have a Net Owned Fund of INR Twenty Million, unless a higher amount is required by RBI.

c. It should act as an intermediary via digital platform or otherwise between lender and borrower, instead of providing loan and advances on its own.

d. It cannot provide a credit guarantee or credit enhancement scheme and it can only provide clean loans i.e. no secured loan linked to its own platform.

e. It will undertake credit profiling and risk assessment of the borrower to know their creditworthiness, so that lenders can take informed decisions.

f. It will ensure that signing of loan agreement and submission of other documents is complete.

g. It will provide a fund transfer mechanism via escrow account between lender and borrower; it should have two escrow accounts, one for lender for disbursement of loan and other for collection of EMIs from borrower.

h. Total exposure of the lender will not be more than INR Fifty Lakh to all the borrowers. Provided, a single lender will not provide more than INR Fifty Thousand to the same borrower.

i. It will not allow borrowers to take loans of more than INR Ten Lakh across all P2P Platform and maturity period cannot be more than 36 months.


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