Rising costs from T+1 timeline may push weaker P2P players to the brink

While there are 26 licensees, only 10-11 players are active in this space, with the industry's assets under management totalling Rs 11,000 crore

P2P lending
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3 min read Last Updated : Aug 23 2024 | 4:49 PM IST

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The peer-to-peer (P2P) lending industry association has requested that the Reserve Bank of India (RBI) reconsider its mandate requiring funds in escrow accounts to be cleared within one day (T+1). In the absence of regulatory relief, industry players have indicated they will absorb the additional costs associated with the T+1 timeline for now. However, there are concerns that platforms with limited capital may struggle to survive under these conditions, potentially jeopardising the already fragile industry.

“We have fairly high hopes that the T+1 reversal will happen. We are simply asking not to have to do micro-transactions. If