Reserve Bank of India (Non-Banking Financial Companies – Peer to Peer Lending Platform) Directions, 2025
UR
- Applies toFinance companies
- StatusIn force
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length44 points in 5 sections · 4 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Numbers to remember
| two crore | A platform needs owned funds of at least rupees two crore to register. RBI Para 13 |
| twelve months | An in principle approval lasts twelve months while the platform gets built. RBI Para 17 |
| ₹50,00,000, | A lender's total across all platforms is capped at ₹50,00,000, matched to net worth. RBI Para 26 |
| ₹10,00,000 | Lending above ₹10,00,000 needs a chartered accountant certificate of ₹50,00,000 net worth. RBI Para 26 |
| ₹50,000 | One lender may lend one borrower at most ₹50,000 in total. RBI Para 28 |
| 36 months | No loan may run longer than 36 months. RBI Para 29 |
| one month | Complaints must be settled within one month of receipt. RBI Para 51 |
| two years | Outside computer auditors must check the systems at least once every two years. RBI Para 57 |
| 26 per cent | Crossing 26 per cent ownership needs RBI's written permission first. RBI Para 67(1) |
| 15 days | Quarterly statements on loans, escrow money, complaints and borrowings reach RBI within 15 days. RBI Para 75 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
Must know
1. No moonlighting companies
An existing finance company cannot run a peer to peer platform itself.
2. Two crore to start
A platform needs owned funds of at least rupees two crore to register.
BankPulse example. A peer to peer platform applies to register. Its owned funds are one crore fifty lakh rupees. RBI asks for not less than rupees two crore. So the platform cannot register yet.
3. Twelve months to build
An in principle approval lasts twelve months while the platform gets built.
4. No public deposits
It may not raise deposits of any kind.
5. Never its own money
The platform may not lend its own money.
6. No credit safety nets
It may not give or arrange any credit cover for the loans.
7. Clean loans only
Every loan on the platform must be unsecured; no security may be taken.
8. No foreign money flows
Money may not flow across the border through the platform.
Do it
9. Retail lenders change that
The moment ordinary lenders also lend through it, the platform must register.
10. Data stays in India
All platform data must be stored and processed on computers inside India.
Background
11. In force on posting
These directions took effect the day they were placed on RBI's website.
12. Who is covered
The directions apply to every company running a peer to peer lending platform.
13. Agents for banks excluded
A platform that only finds borrowers for banks and finance companies is not covered.
14. Applications through PRAVAAH
Registration applications go through the Reserve Bank's PRAVAAH portal.
15. Only a matchmaker
The platform is only a marketplace bringing lenders and borrowers together.
16. Lenders carry every loss
Every loss of principal or interest falls on the lenders alone.
17. Almost nothing else sold
It may sell nothing else, except insurance tied to the loan itself.
Chapter III. Prudential Norms
Must know
1. Borrowing capped at twice
The platform's outside borrowings may never exceed twice its owned funds.
2. Fifty lakh per lender
A lender's total across all platforms is capped at ₹50,00,000, matched to net worth.
3. Certificate above ten lakh
Lending above ₹10,00,000 needs a chartered accountant certificate of ₹50,00,000 net worth.
4. Ten lakh per borrower
A borrower may owe at most ₹10,00,000 across every platform.
5. Fifty thousand per pair
One lender may lend one borrower at most ₹50,000 in total.
6. Three years at most
No loan may run longer than 36 months.
7. Fees never ride repayment
The platform's fee can never depend on whether the borrower repays.
8. One day in escrow
Money may sit in an escrow account only one bank working day after it arrives.
9. No assured returns
The platform may never sell itself as an investment with assured returns or easy exits.
10. One month for complaints
Complaints must be settled within one month of receipt.
11. Audit every two years
Outside computer auditors must check the systems at least once every two years.
Do it
12. Fees fixed up front
Fees must be a fixed sum or a fixed share of the loan amount.
13. Losses shown every month
The website must show portfolio performance and bad loan share every month, including lender losses.
14. Interest as yearly rate
Interest must be shown as a yearly percentage rate.
15. Recovery without harassment
Recovery staff must be trained; bothering borrowers at odd hours or coercion is banned.
16. RBI's own warning
Every page must carry the warning that RBI takes no responsibility for the platform or repayments.
17. A backup caretaker
If the platform shuts, a third party must keep running the loans to term.
Background
18. Approval before money moves
No money moves until lenders and borrowers are matched under the board approved policy.
19. No closed circles
Matching lenders and borrowers inside a closed private circle is banned.
20. Escrow via bank trustee
Money moves through escrow accounts run by a bank promoted trustee: one for lenders' funds, one for repayments.
21. No cash ever
Every transfer runs bank account to bank account; cash is strictly banned.
22. Risk warning signed
Every lender signs a declaration accepting the risk, including losing the whole principal.
Chapter IV. Corporate Governance
1. 26 per cent needs RBI
Crossing 26 per cent ownership needs RBI's written permission first.
Chapter V. Miscellaneous Instructions
1. Fees not outsourced
Setting prices and fees can never be handed to an outside agency.
2. Quarterly reports, 15 days
Quarterly statements on loans, escrow money, complaints and borrowings reach RBI within 15 days.
Chapter VI. Repeal and Other Provisions
1. Old guidance repealed
All earlier peer to peer platform rules stand repealed from the day these directions arrived.
2. Old actions stay governed
Action already taken under the old rules stays governed by them.
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