RBI Fines Four P2P Lending Platforms Rs 77 Lakh For Not Complying With Norms
The Reserve Bank of India has imposed a series of monetary penalties totaling nearly Rs 77 lakh on four peer-to-peer lending platforms for disbursing loans without the specific approval of individual lenders.
On Feb. 11, the RBI fined Fairassets Technologies India Pvt. as the company had not undertaken and disclosed credit assessment and risk profile of the borrowers to the prospective lenders, the central bank said in one of the releases on Friday.
It also took partial credit risk by foregoing the management fee partially or fully, which was not provided under the scope of activities for NBFC-P2P companies.
The company also did not comply with the RBI's directions on Fund Transfer Mechanism when it allowed repayments to lenders from fresh funds provided by new or existing lenders or through repayments pooled from the borrowers, rather than from a specific borrower to a specific lender. In September 2023, RBI had conducted an investigation of the company.
The RBI also imposed a fine of Rs 16.6 lakh on Visionary Financepeer Pvt. on Feb. 25. Apart from disbursing loans to individual borrowers without the specific approval of individual lenders, the company also did not ensure that each individual lender and borrower had signed a loan agreement.
Among a couple other reasons, Visionary Financepeer also did not disclose the required details of the borrowers to the lenders and did not have a board-approved policy for pricing of services provided by it. It also penalised Bridge Fintech Solutions Pvt. and Rang De P2P Financial Services with Rs 10 lakh each.
Peer-to-peer lending is a form of direct lending of money to individuals or businesses without an official financial institution participating as an intermediary in the deal. P2P lending is generally done through online platforms that match lenders with the potential borrowers
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
