Reportedly the restrictions were placed by the regulator in 2017 limiting the P2P loans to a cap of Rs 10 lakh and it was then that the P2P lending platforms received their recognition as NBFCs as well. Furthermore as it happens with business, recognition came with monitoring and imposition of restrictions etc and the stakeholders had taken up with RBI that they have been getting requests for loans of higher denominations but have had to say ‘no’ to the applicants due to the restrictions imposed by RBI.
Perhaps RBI has now asked these companies to submit it proof that they had received applications for loans of amounts higher than Rs 10 lakh and the subsequent decision to decline the loans. Moreover the communication from the central bank has gone to the Association of NBFC Peer-to-Peer Lending Platforms. Apparently the RBI, banks, and the NBFCs are all looking to ensure there is no dearth of liquidity in the market and credit flow where required is facilitated without any hindrance.
Moreover obviously, RBI will scrutinize the data provided by the lenders and RBI would want to ascertain if these claims are genuine and that those denied the loans were indeed deserving of the loans. Hopefully RBI will come out with a positive response once it scrutinizes the information submitted by the startups.
