NEW DELHI: Peer-to-peer (P2P) platform Finzy has received its NBFC-P2P certification from the Reserve Bank of India (RBI).
The P2P industry being regulated ensures that only players who adhere to specific standards of operations and stringent information security guidelines are allowed to function. This helps build the credibility in the industry as a whole.
"The P2P-NBFC license is a validation of our strong business processes, Info security standards and compliance to the RBI guidelines. This is a very important milestone in enhancing our trust to investors and borrowers on Finzy. The application review process RBI adopts is extremely thorough," said Amit More, Founder and CEO, Finzy.
The P2P firm would now be compulsorily required to maintain specific networth, meet set prudential and leverage norms, have a fit and proper board at all times and ensure fair and transparent operating principles in conduct of it business.
Finzy would also have to contribute repayment track record of each and every loan to CIBIL on a periodic basis. This would ensure more information for all other banks and NBFCs to take informed credit decisions and will also ensure better repayment discipline from borrowers through the P2P platform.
The company helps connect verified borrowers looking for an affordable personal loan with investors looking to invest in a new risk optimised asset class through a proprietary credit assessment algorithm and granular diversification.
In April, Finzy had raised USD 1.3 million in first round of Pre Series A from investors in the industry and expects to complete the second round later this month with pre-identified set of investors.