The Reserve Bank of India has increased the limits imposed on peer to peer lenders to Rs 50 lakh, in a major relief to the fledgling sector. The limit is the total amount of money any investor can invest across all P2P platforms. As part of the RBI’s monetary policy announcement, the banking regulator said the limit has been extended from Rs 10 lakh now. In the P2P industry, individual borrowers are connected to lenders through digital platforms, and the lender just plays the role of a marketplace. More than 15 companies have registered with the RBI as non-banking finance company P2P lending platforms.

(ET Tech)