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Consider the following statements about Peer to peer (P2P) lending.
- It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- Only individuals can borrow money.
- RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
Which of the above statements is/are incorrect?
- a)1, 2
- b)1, 2, 3
- c)2, 4
- d)2, 3, 4
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about Peer to peer (P2P) lending. It...
Understanding P2P Lending Statements
Peer-to-peer (P2P) lending is a modern financial practice that allows individuals to borrow and lend money directly without traditional financial institutions. Let's analyze the statements provided:
Statement 1: It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- This statement is correct. P2P lending platforms facilitate unsecured loans between individuals, with interest rates agreed upon by both parties.
Statement 2: Only individuals can borrow money.
- This statement is incorrect. Both individuals and businesses can borrow through P2P lending platforms. Hence, it is not limited to individuals alone.
Statement 3: RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- This statement is correct. The Reserve Bank of India (RBI) has established a regulatory framework for P2P lending platforms, classifying them as NBFCs.
Statement 4: Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
- This statement is incorrect. The minimum net worth requirement set by the RBI for P2P lending platforms is actually Rs. 2 Cr, not Rs. 5 Cr.
Conclusion
Based on the analysis:
- Incorrect Statements: Statement 2 and Statement 4
- Therefore, the correct answer is option C (2, 4).
This breakdown clarifies why the identified statements are incorrect, highlighting the flexibility of P2P lending and the regulatory requirements set forth by the RBI.
Peer-to-peer (P2P) lending is a modern financial practice that allows individuals to borrow and lend money directly without traditional financial institutions. Let's analyze the statements provided:
Statement 1: It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- This statement is correct. P2P lending platforms facilitate unsecured loans between individuals, with interest rates agreed upon by both parties.
Statement 2: Only individuals can borrow money.
- This statement is incorrect. Both individuals and businesses can borrow through P2P lending platforms. Hence, it is not limited to individuals alone.
Statement 3: RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- This statement is correct. The Reserve Bank of India (RBI) has established a regulatory framework for P2P lending platforms, classifying them as NBFCs.
Statement 4: Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
- This statement is incorrect. The minimum net worth requirement set by the RBI for P2P lending platforms is actually Rs. 2 Cr, not Rs. 5 Cr.
Conclusion
Based on the analysis:
- Incorrect Statements: Statement 2 and Statement 4
- Therefore, the correct answer is option C (2, 4).
This breakdown clarifies why the identified statements are incorrect, highlighting the flexibility of P2P lending and the regulatory requirements set forth by the RBI.
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Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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ample number of questions to practice Consider the following statements about Peer to peer (P2P) lending. It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest. Only individuals can borrow money. RBI enabled P2P entities as Non-Banking Financial Company (NBFC). Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.Which of the above statements is/are incorrect?a)1, 2b)1, 2, 3c)2, 4d)2, 3, 4Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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