The company informed customers that bulk withdrawals will be limited in compliance with these rules.
It reassured that no non-compliance has occurred in the past or present and aims to resume withdrawals next week, based on repayments received.
The new RBI guidelines have introduced significant changes to the P2P lending landscape.
NBFC-P2P platforms are now prohibited from providing credit guarantees, assuming credit risk, or offering liquidity options.
The RBI’s tightening of the rules comes after it discovered that some platforms were violating the prescribed fund transfer mechanisms and promoting P2P lending as an investment product with assured returns.
India P2P and other platforms are facing operational challenges under the new norms.
Key issues include the T+1 settlement rule, which mandates that funds in escrow accounts be transferred within one day, and the requirement to return EMIs to lenders without reinvestment options.
Industry sources warn that trustees may find it difficult to approve the large volume of daily transactions—ranging from ₹5-₹10 lakh—required to meet the RBI’s demands.
The Association of P2P Lending Platforms plans to seek a meeting with the RBI to request clarifications on these tighter regulations.
Industry players have expressed concerns that the rules could severely impact business operations unless some relaxations are granted.
They are calling the new norms a “body blow” to the industry, with credit risk-sharing, reinvestment, and the settlement rule at the center of their concerns.
RBI’s perspective
The RBI reviewed and tightened the master directions for NBFC-P2P lending platforms after finding violations of its rules.
Some platforms were found acting like deposit takers and lenders, rather than functioning purely as intermediaries.
The revised regulations emphasize that NBFC-P2Ps must not assume any credit risk and that all fund transfers between participants must be through escrow accounts managed by a bank-promoted trustee.
Additionally, the RBI has capped the aggregate exposure of a lender to all borrowers across P2P platforms at ₹50 lakh.
