{"id":8706,"date":"2018-04-17T16:21:28","date_gmt":"2018-04-17T10:51:28","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=8706"},"modified":"2020-12-31T14:38:52","modified_gmt":"2020-12-31T09:08:52","slug":"process-of-p2p-lending-nbfc-registration","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/process-of-p2p-lending-nbfc-registration\/","title":{"rendered":"Process of P2P Lending-NBFC Registration"},"content":{"rendered":"

Peer to Peer Lending-NBFC<\/a><\/h2>\n\n\n\n

Peer to peer lending is a crowdfunding online<\/em> model where people looking to invest their money with the people who want to borrow can do so. Peer to Peer Lending<\/strong><\/a>-NBFC this concept comes with the purpose that the people who have surplus fund can earn more interest than saving or FD account and reduce the complex procedure of documents subject to risk.<\/p>\n\n\n\n

The Process of P2P Lending-NBFC Registration<\/h2>\n\n\n\n

Existing NBFC<\/h3>\n\n\n\n
  1. The application shall be filled in a prescribed form to the RBI-MUMBAI<\/strong><\/li>
  2. The Company must be incorporated in India.<\/li>
  3. The Company must have an adequate Capital structure to undertake the business.<\/li>
  4. The Promoter & Director must satisfy the criteria for FIT & Proper.<\/li>
  5. The General character of the management of the company is not prejudicial to the public interest.<\/li>
  6. The company has submitted a plan for or implemented a robust and secure information technology system.<\/li>
  7. The company has submitted a viable business plan for conducting the business of peer to peer lending-nbfc platform.<\/li>
  8. The Company has submitted a viable business plan for conducting the business of peer to peer lending-nbfc platform.<\/li>
  9. Public interest shall be served by the grant of COR.<\/li>
  10. Any other condition.<\/li><\/ol>\n\n\n\n

    In Case of Prospective-P2P NBFC<\/h3>\n\n\n\n
    1. In case of prospective NBFC, the condition mentioned above also need to satisfy and after submission of documents, the authority may grant principle approval<\/strong> for setting up of a peer to peer lending platform, subject to such condition which it may consider fit to impose.<\/li>
    2. The validity of the principal approval is 12 months<\/strong> from the date of granting the approval.<\/li>
    3. Within the period of 12 months, the company shall put in place the technology platform; enter into all other legal documentation required and report the position of compliance with the terms of grant principal approval to the bank.<\/li>
    4. After satisfying all the condition the RBI shall grant a COR as NBFC-P2P, subject to a condition prescribed by the RBI<\/strong>[1]<\/a><\/sup>.<\/li><\/ol>\n\n\n\n

      Grounds for Cancellation of Registration<\/h2>\n\n\n\n

      The COR issued to NBFC-P2P Lending<\/strong> shall beget cancelled if the following condition is satisfied<\/p>\n\n\n\n

      1. Ceases to carry on the business of Peer to Peer Lending – NBFC<\/a><\/strong> Platform in India. or<\/li>
      2. Has failed to comply with any condition subject to which COR has been issued to it. Or<\/li>
      3. Is no longer eligible to hold the COR, or<\/li>
      4. At any time fails to fulfil the following condition:-