After flagging dangers and tightening tips for peer-to-peer (P2P) lending platforms in August, the Reserve Financial institution of India (RBI) has requested particular mortgage disbursement knowledge from these companies for the intervals of April to June 2024, July 1 to August 16, and August 16 to September 30.
The RBI launched revised tips for P2P lending platforms on August 16. Most platforms have offered this knowledge to the regulator.
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This growth is taken into account ‘out of flip,’ as firms are usually required to submit quarterly knowledge, together with data on belongings beneath administration (AUM), excellent loans, gross non-performing belongings, and mortgage disbursals, sources stated.
Moreover, the central financial institution has sought knowledge on loans excellent categorised by tenor as on September 30, in addition to by rates of interest charged for loans disbursed throughout the identical interval, in response to sources conversant in the matter.
In its revised tips, the RBI mandated that funds transferred into the lenders’ and debtors’ escrow accounts shouldn’t stay in these accounts for greater than T+1 day, the place ‘T’ is the date on which the funds are obtained.
The RBI additionally flagged regulatory violations by some P2P lending platforms, highlighting that some have been selling P2P lending as funding merchandise, providing liquidity choices, and working as deposit-takers and lenders, slightly than intermediaries.
In response to business sources, the regulator’s request for comparative knowledge between July 1 to August 16 and August 17 to September 30 goals to watch how the sector has adjusted after the revised tips have been issued.
“The survey carries a few new questions that differ from the common quarterly knowledge we offer. Since they’ve particularly requested for knowledge after August 16, they might be attempting to evaluate how the business and the companies have carried out,” an business participant stated, requesting anonymity.
The RBI has directed firms to submit knowledge on the quantum of AUM or excellent portfolio throughout completely different mortgage tenors, the particular person stated.
Because the revised tips have been launched, the P2P lending section has reportedly seen an almost 90 per cent drop in volumes, in response to business sources.
“We really feel this is able to have been requested for since some platforms might exit the P2P enterprise. The information level could possibly be used to examine how lengthy does it take for collections or excellent recoveries to occur,” one other business participant stated.
“It’s troublesome to implement the T+1 timeline by November 15 because the technical execution is difficult. No financial institution within the nation can reconcile transactions as quick because the RBI expects us to do,” one of many folks quoted above stated.
The particular person added that the brand new framework would improve working prices.
At present, there are 26 licensed gamers within the P2P lending area, however solely 10-11 are actively working, with the business’s AUM totaling Rs 11,000 crore.
RBI AT WORK
> Mortgage disbursement knowledge requested for April-June, July 1-August 16, and August 16-September 30 of 2024
> Specialists imagine the transfer is for monitoring how the sector has contracted after revised tips have been issued
> The volumes within the P2P lending section possible have dropped by nearly 90% for the reason that RBI’s revised tips of RBI
First Printed: Oct 04 2024 | 10:57 PM IST
