The Reserve Bank of India (RBI), has increased the permissible limit for an individual lender across all P2P lending platforms from INR 10 Lakhs to INR 50 Lakhs at any given point of time.

In a notification, RBI said that the aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of INR 50 Lakh. Moreover, the RBI also notified that investments of these lenders should also remain consistent with their net-worth.

RBI has also made it mandatory for lenders investing more than INR 10 Lakhs on P2P platforms to have a minimum net worth of INR 50 Lakhs. “The lender investing more than INR 10 Lakhs across all P2P platforms shall produce a certificate to P2P platforms from a practising chartered accountant certifying minimum net-worth of INR 50 Lakhs,” said RBI

Currently, all the lending on P2P platforms is done through an escrow account, which acts as a secured third-party platform for the transaction. These third-party services are mostly provided by banks promoted by lenders and borrowers. “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,” RBI now clarified in the statement.

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