On 24 August 2017, the RBI had issued a notification that the Company into “business of a peer to peer lending platform” would be termed as Non-Banking Financial Company(NBFC) and such activity shall be carried out with the prior approval of Central Government. The term “the business of a peer to peer lending platform” shall mean the business of providing under a contract, the service of loan facilitation, via online medium or otherwise, to the participants who have entered into an arrangement with that platform to lend on it or to avail of loan facilitation services provided by it. In continuation to the aforementioned notification, the RBI on 4 October 2017 has issued master directions for Peer to Peer Lending Platform by NBFC which shall provide the framework for the registration and operation of NBFC-P2Ps in India. Source:https://rbidocs.rbi.org.in/rdocs/notification/PDFs/MDP2PB9A1F7F3BDAC463EAF1EEE48A43F2F6C.PDF
