P2P firms seek life support as tough regulations sink businesses

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The fledgling peer-to-peer (P2P) lending industry is seeking regulatory relaxations from the Reserve Bank of India (RBI) on stringent payment processing norms, as most major platforms struggle to keep their businesses afloat.

Industry executives told ET that overall assets under management through non-banking financial company P2Ps have plunged more than 85% to about Rs 1,500 crore from more than Rs 10,000 crore a year ago.

The sector was first brought under RBI regulation in 2017. But in August and September 2024, the central bank issued…



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P2P firms seek life support as tough regulations sink businesses


The fledgling peer-to-peer (P2P) lending industry is seeking regulatory relaxations from the Reserve Bank of India (RBI) on stringent payment processing norms, as most major platforms struggle to keep their businesses afloat.

Industry executives told ET that overall assets under management through non-banking financial company P2Ps have plunged more than 85% to about Rs 1,500 crore from more than Rs 10,000 crore a year ago.

The sector was first brought under RBI regulation in 2017. But in August and September 2024, the central bank issued…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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