Question
What is NOT correct about P2P lending in India?
i. This is unsecured lending by crowd-funding ii. Individual or businesses can borrow from the P2P platforms iii. P2P lending platforms are banned in few countries iv. Expecting tight regulation the number of P2P player is declining rapidly in IndiaSolution
While P2P lending platforms are banned in Japan and Israel, they are regulated as banks in France, Germany and Italy, and are exempt from any regulation in China and South Korea (Annual Report RBI). In India, there are currently many online P2P lending platforms and the sector has been growing at a rapid pace. The Reserve Bank released a consultation paper on P2P lending in April 2016. P2P platforms are proposed to be regulated as a separate category of NBFCs.
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