Peer-to-peer lending segment needs regulation, says Reserve Bank of India deputy governor
Mumbai: Given past experience with emerging financial services businesses such as microfinance, the Reserve Bank of India (RBI) feels the need to have regulations in place for peer-to-peer (P2P) lending platforms, said R. Gandhi, deputy governor of the Reserve Bank of India (RBI).
“Given the microfinance episode and the public reaction to failures of unregulated entities, we feel P2P lending platforms need to be regulated, even though they have not yet really taken serious magnitude,” Gandhi said at Mint’s Marketplace Lending Summit on 17 May in Mumbai.
The central bank, however, believes that as of now, the nascent sector needs light-touch regulation.
“In the discussion paper, we have noted that internationally, there is every type of approach to dealing with the P2P platforms, ranging from outright ban to total indifference. Our tentative assessment is that P2P lending platforms need to be regulated, it now may be the right time and it can be light-touch,” he said.