RBI said that it has imposed a monetary penalty of Rs 10 lakh on Rang De P2P Financial Services Ltd. The company disbursed loans to individual borrowers without the specific approval of individual lenders.
RBI NBFC: The Reserve Bank of India (RBI) has imposed a penalty of Rs 76.60 lakh on four NBFCs Rang De P2P Financial Services, Faircents Technologies India Private Limited (also known as Faircent), Visionary Financepeer Private Limited and Bridge Fintech Solutions Private Limited (also known as Finzy) for non-compliance of the provisions of the Non-Banking Financial Companies (NBFCs) directions.
What did RBI say?
RBI said that it has imposed a monetary penalty of Rs 10 lakh on Rang De P2P Financial Services Ltd. The company disbursed loans to individual borrowers without specific approval of individual lenders. FairAssets Technologies India Pvt Ltd has been imposed a monetary penalty of Rs 40 lakh for disbursing loans without specific approval of individual lenders, not disclosing the credit assessment and risk profile of borrowers to prospective lenders and taking partial credit risk by partially/fully forgoing management fees.
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What did RBI say?
The company also did not follow RBI directions on ‘fund transfer mechanism’ when it allowed repayments to lenders from fresh funds provided by new/existing lenders or through repayments collected from borrowers, instead of repayments from a specific borrower to a specific lender, RBI said in a statement.
RBI has imposed a penalty of Rs 16.60 lakh on Visionary Financepeer Private Limited for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by RBI.
According to RBI, the company disbursed loans to individual borrowers without the specific approval of individual lenders, and it did not ensure that each individual lender and borrower signed a loan agreement; It also did not disclose the required details of borrowers to lenders; it did not have a board-approved policy for pricing of the services it provided, and the company, in some cases, did not ensure that its agreements with service providers included clauses to recognise the RBI’s right to inspect service providers and conducted annual reviews of service providers; and took partial credit risk, which was not provided for under the ‘scope of activities’ for NBFC-P2P companies. In the fourth case, the central bank imposed a monetary penalty of Rs 10 lakh on Bridge Fintech Solutions Private Limited, also known as “Finzy”, for non-compliance of certain provisions of the ‘Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’ issued by the RBI.
