P2P Lending NBFC RBI Compliance India — Platform Software 2026

P2P Lending NBFC RBI Compliance India — Platform Software 2026

Peer-to-Peer (P2P) lending platforms — where individual lenders fund individual borrowers through an online platform — are regulated in India as NBFC-P2P. RBI issued the Master Directions for NBFC-P2P Lending Platforms in 2017 and updated them subsequently. P2P platforms face strict exposure limits, mandatory escrow arrangements, and specific borrower-lender matching rules that require purpose-built software.

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RBI Regulations for NBFC-P2P

Exposure Limits
- Aggregate borrower limit: a single borrower cannot borrow more than Rs. 10 lakh across all P2P platforms
- Aggregate lender limit: a single lender cannot lend more than Rs. 50 lakh across all P2P platforms (revised 2023)
- Single borrower-lender exposure: a lender's exposure to a single borrower cannot exceed Rs. 50,000

Escrow Mechanism
- All fund flows must route through escrow accounts held at a bank
- Lender funds: deposited in lender escrow account
- Borrower disbursement: from escrow to borrower account
- Repayment: from borrower to lender via escrow
- No commingling: platform cannot touch the funds for its own use

Borrower Eligibility
- CIBIL / credit bureau check mandatory
- Minimum eligibility criteria disclosed
- Platform cannot guarantee returns to lenders

Lender Protection
- No credit risk guarantee: lenders assume full credit risk
- Transparent risk disclosure: NPAs on the platform disclosed on website
- No assured returns: fixed return schemes are prohibited

Regulatory Returns
- Quarterly return to RBI: borrower count, lender count, outstanding portfolio, NPA rate
- Annual audited accounts

Fair Practices
- Recovery only by borrower, never by the platform
- No collection harassment

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MICS P2P Platform Software Features

Lender Management
- Lender KYC: Aadhaar OTP eKYC + PAN verification + V-CIP for higher limits
- Risk profiling: lender's risk appetite, investment objective
- Lender dashboard: portfolio, returns, NPA rate, diversification
- Exposure tracking: lender's total exposure across all active loans — enforce Rs. 50 lakh limit
- Lender wallet: escrow balance visible to lender

Borrower Management
- Borrower KYC: Aadhaar OTP eKYC + PAN
- Credit bureau check: CIBIL score and report
- Credit scoring: P2P-specific scorecard
- Risk grade assignment: A, B, C, D — determines interest rate
- Exposure check: borrower total across all P2P platforms — Rs. 10 lakh cap
- Loan listing: approved borrower listed on platform for lender funding

Matching Engine
- Auto-matching: system matches lender funds to borrower requirements
- Diversification: lender funds spread across multiple borrowers per Rs. 50,000 single-exposure rule
- Interest rate: determined by borrower risk grade and market
- Manual matching option: for platform-assisted matching

Escrow Management
- Integration with escrow bank: HDFC, ICICI, or Axis (empanelled P2P escrow banks)
- Lender deposit: funds received in lender escrow
- Disbursement: from borrower escrow to borrower bank after match confirmed
- Repayment processing: borrower EMI → borrower escrow → lender escrow → lender account
- Escrow reconciliation: daily balance match between platform records and escrow bank

Loan Management
- Multi-lender loan: one borrower loan funded by 5-20 lenders
- EMI computation: borrower pays one EMI, platform distributes pro-rata to lenders
- Prepayment: split among lenders proportionally
- NPA: declared at 90 DPD — all lenders notified
- Recovery: facilitated by platform but not guaranteed

Risk Disclosure
- Website: platform NPA rate by risk grade published monthly
- Historical performance: actual returns vs. projected by grade
- No guaranteed return disclaimer: prominent on all lender-facing pages

Regulatory Reporting
- Quarterly RBI return: portfolio data in prescribed format
- NPA disclosures: website update monthly
- Lender and borrower count reporting

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Pricing

- P2P platform software: Rs. 40,000/month (includes LOS, escrow integration, matching engine, regulatory reporting)
- One-time setup: Rs. 2,00,000
- Escrow bank integration: Rs. 75,000 one-time

Free P2P platform consultation: +91 9355273535 | admin@mics.asia