With the Reserve Bank of India (RBI) releasing a paper on P2P lending, the regulatory framework for the growth of the sector is now an important point of discussion. Mumbai: Peer-to-peer, or P2P, lending is being seen as an alternative way of banking, with the objective of promoting financial inclusion; the current banking system is seen to have failed to reach out to millions who live in the remotest parts of India. If we over-regulate P2P lending in the beginning, it will be killed; whether it should be enabling regulation or risk-based that allows technology to develop must be looked into. At Mint’s Marketplace Lending Summit in Mumbai on 17 May, panellists Cyril Shroff, managing partner of law firm Cyril Amarchand Mangaldas; O.P. Karan Bhagat: In case of P2P lending, there are small multiple investors and there is investment in a small format, where multiple loans are given to many borrowers in multiple small amounts.

Source: Mint May 26, 2016 13:48 UTC