Recently, Reserve Bank of India (RBI) proposed to follow peer-to-peer lending system in India in upcoming years. With this reference, consider the following statements:
- Peer-to Peer lending involves the practice of lending money to individuals or businesses through online services
- Peer to Peer lending system does not involve use of official financial institution or a banking intermediary.
- This system of lending earns higher return to investors and also mitigates the risk of bad debt
Which of the above statements is/are correct?
Peer-to-peer lending, sometimes abbreviated P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers. It is still to be decided that who will regulate the peer-to-peer lending in India. Will it be RBI or SEBI.
This question is a part of GKToday's Integrated IAS General Studies Module