REGULATORY SHOCK

P2P lending platforms are facing challenges in adapting to the new RBI regulations, resulting in a decline in their business volume of up to 90%

- TEENA JAIN KAUSHAL

IT'S BEEN MORE than a month since the Reserve Bank of India's (RBI) new regulations on peerto-peer (P2P) lending took effect, but the industry is still struggling to adjust. Several platforms have experienced a sharp decline in their business, with some even seeing volumes drop by 90%.

"Since the new regulations came into force, our volumes have dropped by 90%. We've resumed accepting new investments, but a new product we've introduced is not drawing lenders," says Bhuvan Rustagi, Co-founder and COO of LendBox, a major P2P lending platform.

The P2P lending model allows individuals to provide loans to others through RBI-regulatedNBFC (non-banking financial company) platforms that connect lenders with borrowers. These platforms serve as intermediaries, facilitating transactions and overseeing repayments.