Peer-to-peer (P2P) lending platforms have written to the Reserve Bank of India (RBI) governor Shaktikanta Das seeking an increase in the lending limit for high net worth individuals (HNI) and ultra-high net worth individuals (UHNI) or small retail lenders from current Rs 10 lakh to Rs 1 crore who have financial strength to lend via such platforms. “No rules have been relaxed since RBI’s October 2017 guidelines to NBFCs operating P2P platforms. If the limit is increased, it will increase P2Ps exposure and focus towards MSMEs as there are several industries not touched because of the low limit like medical equipment etc. Rs 10 lakh is not the amount that attracts lenders as their efforts are more than the returns,” Rajiv M Ranjan, Secretary, Association of NBFC P2P Platforms told Financial Express Online.

“Initially these regulations seemed fine because the industry was newly regulated and we wanted serious players to come in and see how industry grow and moves but now it has been more than 18 months and it is high time some relaxation has to happen,” said Ranjan.

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