RBI cracks down on four P2P lending firms for regulatory violations, slaps Rs 76.60 lakh fine, ET BFSI
The Reserve Bank of India (RBI) has imposed a cumulative penalty of Rs 76.6 lakh on 4 peer-to-peer (P2P) lending platforms—Faircent, Finzy, Visionary Financepeer, and Rang De P2P Monetary Companies—for non-compliance with NBFC-P2P guidelines. The motion follows RBI’s scrutiny of those platforms in September 2023 and their responses to regulatory notices.
Faircent faces the best penalty of Rs 40 lakh for failing to reveal debtors’ credit score evaluation and danger profiles, assuming partial credit score danger by foregoing administration charges, and violating fund switch mechanisms. The corporate facilitated repayments to lenders utilizing contemporary funds from new or present lenders as a substitute of direct repayments from debtors.
Visionary Financepeer has been fined Rs 16.6 lakh for assuming partial credit score danger, failing to reveal borrower particulars to lenders, and never implementing a board-approved pricing coverage. Finzy and Rang De P2P Monetary Companies every acquired a Rs 10 lakh penalty for disbursing loans with out particular lender approval and failing to conduct compliance critiques. Finzy additionally omitted RBI’s inspection rights from agreements with service suppliers.
Elevated scrutiny
The penalties come amid rising regulatory scrutiny of P2P lending platforms. In January 2025, the RBI issued a questionnaire to eight P2P lenders to evaluate compliance with up to date pointers. In October 2024, it had issued show-cause notices to 4 platforms and initiated license cancellation proceedings for 2. Earlier, in August 2024, LiquiLoans and LenDen Membership had been fined for comparable violations, together with routing funds by way of unauthorized escrow accounts.
RBI’s pointers for P2P lending, launched in 2017 and up to date in 2024, require lenders to approve particular person mortgage recipients and prohibit platforms from assuming credit score danger. Fund transfers should comply with a two-escrow account system, guaranteeing borrower repayments movement on to lenders. The most recent penalties reinforce the central financial institution’s efforts to tighten oversight and implement compliance within the sector.
