With India’s new RBI norms, Peer 2 Peer lending start-ups are hoping to attract VC’s

September 26, 2016 All News, India 0 Comments

Some peer-to-peer (P2P) lending start-ups are hoping that the central bank’s move to regulate the nascent sector’s business will help attract venture capitalists (VCs), who have stayed away from this quarter due to lack of guidelines. There are about 40 such entities in India. On the other hand, regulation may also lead to many players shutting shop if they’re unable to meet requirements such as maintenance of Rs 2-crore capital and an interest rate cap, which were published in the RBI’s discussion paper in May 2016. While players in this space are expecting at least six months to one year to comply with the regulations, it is not clear if they would be asked to put their business on hold during that period. One of the changes that many companies have requested in their feedback to the central bank is halving of the minimum capital requirement to Rs 1 crore. More info source