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Consider the following statements regarding P2P lending in India:
1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.
2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.
3. All P2P platforms come under the purview of RBI regulations.
Which of the statements given above is/are correct?
- a)1 and 2 only
- b)2 and 3 only
- c)1 only
- d)1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding P2P lending in India:1. P2...
- P2P lending or Peer-to-Peer lending is a type of crowdsourcing used to fund loans that have interest attached. It can be described as the process of providing unsecured loans through the use of an internet marketplace that connects lenders and borrowers. A legal entity or an individual can apply for a loan as the borrower. Hence statement 1 is correct.
- P2P lending, to put it simply, is a financial arrangement made between a lender and a borrower without the involvement of any third parties, such as a bank. By thoroughly evaluating each party's eligibility for these digital transactions, the internet organisation that is arranging this peer-to-peer exchange will serve as the risk mitigator between these two parties.
- All P2P platforms come under the purview of RBI regulations. All players are required to register for a NBFG-P2P license to provide P2P lending services. The regulations cover the scope of the P2P platforms' activities and prescribe certain prudential norms to be followed by them. Hence statement 3 is correct.
- Under the rules, no borrower is allowed to borrow more than Rs 10 lakh at any point of time, across all P2P platforms. Likewise, a lender cannot put up more than R$ 50 lakh across these platforms at any point. Further, a lender's exposure to the same borrower, across all P2Ps, cannot exceed Rs 50,000. No loan can be sanctioned for a tenure beyond 36 months. No loan can be disbursed unless the individual lender has approved the recipients of the loan and all concerned participants have signed the loan contract. Hence statement 2 is correct.
- After RBI issued its regulations in 2017, the space saw a spree of fundraising involving some of the existing players in the segment. Some of the major companies operating in this space include RupeeCircle, Finzy, IndiaMoneyMart, etc. For its P2P lending feature, CRED has tied up with RBI-approved non-banking financial company Liquiloans.
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Consider the following statements regarding P2P lending in India:1. P2...
Understanding P2P Lending in India
P2P (Peer-to-Peer) lending has gained traction in India as an alternative financing method. Here’s a detailed breakdown of the statements regarding P2P lending:
1. P2P Lending Process
- P2P lending is indeed a process of providing unsecured loans through an internet marketplace.
- It connects borrowers directly with individual lenders, facilitating loan transactions without traditional banking intermediaries.
2. Borrowing Limit
- According to the Reserve Bank of India (RBI) regulations, no borrower is allowed to borrow more than Rs 10 lakh across all P2P platforms at any given time.
- This limit is set to mitigate credit risk and ensure responsible borrowing among individuals.
3. RBI Regulations
- All P2P lending platforms in India are regulated by the RBI.
- This regulation was established to maintain transparency, protect consumer interests, and ensure the stability of the financial system.
Conclusion
- Since all three statements are accurate, the correct answer is indeed option 'D' - 1, 2, and 3.
- P2P lending is a crucial component of India's financial landscape, providing opportunities for both borrowers and lenders while being under the regulatory framework of the RBI to ensure safe operations.
P2P (Peer-to-Peer) lending has gained traction in India as an alternative financing method. Here’s a detailed breakdown of the statements regarding P2P lending:
1. P2P Lending Process
- P2P lending is indeed a process of providing unsecured loans through an internet marketplace.
- It connects borrowers directly with individual lenders, facilitating loan transactions without traditional banking intermediaries.
2. Borrowing Limit
- According to the Reserve Bank of India (RBI) regulations, no borrower is allowed to borrow more than Rs 10 lakh across all P2P platforms at any given time.
- This limit is set to mitigate credit risk and ensure responsible borrowing among individuals.
3. RBI Regulations
- All P2P lending platforms in India are regulated by the RBI.
- This regulation was established to maintain transparency, protect consumer interests, and ensure the stability of the financial system.
Conclusion
- Since all three statements are accurate, the correct answer is indeed option 'D' - 1, 2, and 3.
- P2P lending is a crucial component of India's financial landscape, providing opportunities for both borrowers and lenders while being under the regulatory framework of the RBI to ensure safe operations.
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Consider the following statements regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. 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 regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. 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 regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. 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 regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. 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 regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. 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 regarding P2P lending in India:1. P2P lending is a process of providing unsecured loans through the use of an internet marketplace.2. No borrower is allowed to borrow more than Rs 10 lakh at any point of time across all P2P platforms.3. All P2P platforms come under the purview of RBI regulations.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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