RBI seeks to regulate peer-to-peer platforms

The Reserve Bank of India for the first time proposed rules for peer-to-peer lending, seeking to regulate a growing sector with potential measures including requiring minimum capital of 20 million rupees (USD 301,023.48) or prohibiting them from promising "extraordinary returns."

The RBI also proposed on Thursday that only those defined as companies engage in peer-to-peer lending and said it may categorise firms in the growing sector as non-banking financial companies.

Peer-to-peer lending has been growing globally, including in India, where only a limited segment of the population has access to bank finance.

The central bank sought feedback to its proposals from the public by May 31.