Peer Pressure
New RBI regulations have created a flutter in the P2P market.
In just seven years, the Chinese Peer to Peer (P2P) industry emerged as the largest in the world, with 3,000 P2P platforms with lending book of around $500 billion.
Even as the success of China's P2P lenders inspired entrepreneurs globally to follow suit, the past year has been extremely challenging for Chinese P2P lenders.
Fed up with indiscriminate growth, instances of fund mismatch, governance issues, frauds, and some platforms even running as Ponzi schemes, Chinese regulators clamped down with stiff regulations. The new regulations are restricting the growth of P2P platforms in China, now.
The Unregulated Days
Closer home, the Reserve Bank of India, or RBI, released the regulatory framework for P2P platforms last October. India
