The Reserve Bank of India has increased the limits imposed on peer to peer lenders to Rs 50 lakh. The limit is the total amount of money any investor can invest across all P2P platforms.
As part of the RBI’s monetary policy announcement, the banking regulator said the limit has been extended from Rs 10 lakh now.
In the P2P industry, individual borrowers are connected to lenders through digital platforms, and the lender just plays the role of a marketplace. More than 15 companies have registered with the RBI as non-banking finance company P2P lending platforms.
“The increase in limit showcases the high growth potential of the industry and confidence of regulator on this emerging asset class. We see this as a positive movement and a big boost to the nascent industry, which is going to provide an alternative banking solution for investors and borrowers,” Economic Times quoted Rajiv M Ranjan, secretary, Association of NBFC P2P Platforms, as saying.
Source: Economic Times