NBFCs play an important role in the Indian financial system by complementing and competing with banks and by bringing in efficiency and diversity into financial intermediation. The Reserve Bank’s regulatory perimeter is applicable to companies conducting non-banking financial activity, such as lending, investment or deposit acceptance as their principal business.
New Categories of NBFCs
Peer to Peer Lending Platform
Guidelines on NBFC-P2P have been issued by the Reserve Bank in October 2017. The Reserve Bank issued a discussion paper on regulation of the peer-to-peer (P2P) lending platform as a NBFC.
What is Peer-to-peer Lending?