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21 D CCP DIGITAL FINANCE-P2P LENDING VIA FINTECH

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Certified Credit Professional — Certified Credit Professional.

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Q

What is Peer-to-Peer (P2P) lending in the context of digital finance?

A

P2P lending is a form of crowdfunded lending where individuals or businesses borrow directly from other individuals through an online platform, bypassing traditional financial intermediaries like banks.

Q

What is the minimum capital requirement for an entity to register as an NBFC-P2P with RBI?

A

Minimum Net Owned Funds of Rs. 2 crore required.

Q

Which regulatory body in India oversees P2P lending platforms?

A

The Reserve Bank of India (RBI) regulates P2P lending platforms in India under the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017.

Q

What is the maximum loan tenure permitted on an NBFC-P2P platform as per RBI guidelines?

A

Maximum loan tenure is 36 months (3 years).

Q

Under what category are P2P lending platforms classified by the RBI?

A

P2P lending platforms are classified as Non-Banking Financial Companies (NBFCs) under the category NBFC-P2P, requiring mandatory registration with the RBI.

Q

Under which RBI Master Direction are P2P lending platforms primarily governed in India?

A

RBI Master Direction on NBFC-P2P Lending Platform, 2017.

Q

What is the maximum aggregate exposure a lender can have across all P2P platforms in India?

A

As per RBI guidelines, a lender's aggregate exposure across all P2P lending platforms cannot exceed Rs. 50 lakh at any point in time.

Q

What is the aggregate lending limit for a lender across all P2P platforms in India?

A

Maximum aggregate exposure is Rs. 50 lakh across all platforms.

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