RBI imposes monetary penalty on Rang De P2P Financial Services Limited (“Rang De”)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Rang De P2P Financial Services Limited (Rang De) after a scrutiny found non-compliance with the Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. RBI said the sustained violation was that the company disbursed loans to individual borrowers without the specific approval of individual lenders. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, and RBI noted that the action was based on regulatory deficiencies and was without prejudice to any other action that may be initiated.