<p>To protect consumers interest, the Reserve Bank on Monday said that on peer-to-peer lending (P2P) platform the permissible exposure of a lender to all borrowers should not exceed Rs 50 lakh at any given point of time.</p>.<p>"On a review, it has been decided that the aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of Rs 50,00,000 provided that such investments of the lenders on P2P platforms are consistent with their net-worth," the RBI said in a notification.</p>.<p>The lender investing more than Rs 10 lakh across P2P platforms will produce a certificate to P2P platforms from a practising Chartered Accountant certifying minimum net-worth of Rs 50 lakh.</p>.<p>"Further, all the lenders shall submit a declaration to P2P platforms that they have understood all the risks associated with lending transactions and that P2P platform does not assure the return of principal/payment of interest," the RBI said in a notification.</p>.<p>On fund transfer mechanism, it said: "Escrow accounts to be operated by bank promoted trustee for transfer of funds need not be mandatorily maintained with the bank which has promoted the trustee".</p>.<p>As per the guidelines, the transfer of funds under P2P lending happens through an escrow account mechanism, which is operated by a bank promoted trustee.</p>.<p>It requires at least two escrow accounts, one for funds received from lenders and pending disbursal, and the other for collections from borrowers, be maintained.</p>.<p>It also mandates that all the transactions through bank accounts and cash transaction are strictly prohibited.</p>
<p>To protect consumers interest, the Reserve Bank on Monday said that on peer-to-peer lending (P2P) platform the permissible exposure of a lender to all borrowers should not exceed Rs 50 lakh at any given point of time.</p>.<p>"On a review, it has been decided that the aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of Rs 50,00,000 provided that such investments of the lenders on P2P platforms are consistent with their net-worth," the RBI said in a notification.</p>.<p>The lender investing more than Rs 10 lakh across P2P platforms will produce a certificate to P2P platforms from a practising Chartered Accountant certifying minimum net-worth of Rs 50 lakh.</p>.<p>"Further, all the lenders shall submit a declaration to P2P platforms that they have understood all the risks associated with lending transactions and that P2P platform does not assure the return of principal/payment of interest," the RBI said in a notification.</p>.<p>On fund transfer mechanism, it said: "Escrow accounts to be operated by bank promoted trustee for transfer of funds need not be mandatorily maintained with the bank which has promoted the trustee".</p>.<p>As per the guidelines, the transfer of funds under P2P lending happens through an escrow account mechanism, which is operated by a bank promoted trustee.</p>.<p>It requires at least two escrow accounts, one for funds received from lenders and pending disbursal, and the other for collections from borrowers, be maintained.</p>.<p>It also mandates that all the transactions through bank accounts and cash transaction are strictly prohibited.</p>