After the Reserve Bank of India unveiled guidelines last October recognizing the need for peer-to-peer lending platforms as NBFC-P2P in the country, the regulatory authority had issued first license in May 2018 and since then 9 players have been recognized as NBFC-P2P companies. More than 12 companies are in the process of getting approval from the regulatory authority. Some of them are at advance to mid-level stage.
To represent the NBFC-P2P industry at various front as well as to represent country’s P2P lending industry at international forums, most of existing & new players have teamed-up and formed a registered body – Association of NBFC P2P Platforms.
The association has been registered under The Society Registration Act, 1860. Mr. Pramod Akhramka has been elected as President, Mr. Rajiv Ranjan as Secretary and Mr. Mukesh Bubna as Treasurer of the association.
Association’s aim is to create awareness on peer-to-peer lending and to promote merits among individuals and institutional customers. It also aims to bring credibility for this industry and to form P2P industry standards for more transparency within the industry.
The association will work in conjunction with various government and regulatory authorities on matter of compliance. Objective of newly formed association is to establish NBFC-P2P industry in the country and make it more credible while having a cohesive work force for this new born industry.
Association members shown their trust in Mr. Pramod Akhramka, Founder OML P2P to lead the association as President, Mr. Rajiv Ranjan, Founder PaisaDukan would be Secretary and Mr. Mukesh Bubna, founder Monexo would be Treasurer of the association.
Speaking on the occasion Mr. Pramod Akhramka, President of newly formed NBFC-P2P Platforms association, said “Peer-to-peer lending has emerged as new source of alternate financing globally and paving the way to evolution in this sector in the country. Our objective is to create awareness about peer-to-peer lending in India as well as promoting its merits among individual and institutional customers. The Association will work actively to make some strategic partnerships and collaborations with other stakeholders in the banking and finance industry.”
Given the government and the RBI’s decision to include peer-to-peer lending as a part of the national financial regulatory framework, the industry’s prospects in coming years are extremely promising. The Association and all its members will ensure the utmost cooperation with the regulators, facilitating the industry’s expansion on various fronts.
Elucidating on the importance of P2P platforms association, Mr. Rajiv Ranjan, Secretary of the association said, “The phenomenon of P2P lending has emerged as an enabler to bring in large number of unbanked people into financial system directly and rapidly. Association would help in bringing more credibility to the segment that is growing at a faster pace at present.”
Mr. Mukesh Bubna, Treasurer of the association said, “Association will setup P2P industry standards that will bring in more transparency to the industry. Right now it’s a nascent industry in India, however, by promoting it as an innovative product for alternative finance, peer-to-peer industry will help financial inclusion in coming years.”
The association aims to associate with honorary members from various domains to strengthen its authority in the Indian Financial Ecosystem.