RBI tightens P2P lending regulations, limiting lender exposure and restricting credit enhancement.

The Reserve Bank of India (RBI) has tightened norms for peer-to-peer (P2P) lending platforms, barring them from offering credit enhancement or guarantees, and assuming any credit risk. NBFC-P2P platforms must obtain an explicit declaration from lenders and mandate lenders with exposures over Rs 10 lakh to produce a certificate from a Chartered Accountant confirming a minimum net worth of Rs 50 lakh. The RBI has also set a cap of Rs 50 lakh on the aggregate exposure of a lender to all borrowers on P2P platforms.