Rang De, Faircent face RBI scrutiny in crackdown on peer-to-peer lenders
Subscribe to enjoy similar stories. MUMBAI : Faircent, Monexo, Rang De, Finzy, Lendbox (Transactree Technologies Pvt. Ltd) and Financepeer are the six new peer-to-peer (P2P) lending platforms that have received show-cause notices from the Reserve Bank of India (RBI), according to a person aware of the development and a right-to-information (RTI) query.
While the RBI's RTI reply showed its enforcement department issued show-cause notices to four platforms, the person told Mint thatthe regulator's banking supervision department issued notices to two platforms. "The enforcement department has initiated action against four more NBFC-P2P lending platforms. The details of violations by these firms cannot be shared at this stage as it would impede the enforcement process," the banking regulator said in its reply to the RTI filed by investment awareness platform ALT Investor's founder Yash Roongta.
According to the person cited above, the enforcement department's notices are related to non-compliance, while those issued by the supervision department are related to licence cancellations. For instance, Monexo has been asked to show cause for not meeting the net worth requirement. In Finzy's case, the notice is for failing to review the fair practices code and not conducting the annual review of partners.
The banking regulator was still contemplating whether to impose any fines on the fintechs, said an executive at an NBFC-P2P on the condition of anonymity. "Since some of them have a lower net worth, a fine of ₹2 crore will be a huge burden for some of them." Emails sent to the RBI, Faircent, Rang De, Finzy, Lendbox and Financepeer remained unanswered till press time. The RBI sent out the first set of show-cause notices to P2P
. Read more on livemint.com
