P2P lending: What's that?

Is it a liquid fund? Is it a fixed deposit? Is it a collective investment scheme?

In the hustle and bustle over what’s happening in the digital lending space, not too many of us are probably aware of the ground realities on the peer-to-peer (P2P) industry turf.

P2P is an online marketplace or a lending platform which collects money from individuals and lends to individuals as well as micro and small enterprises.

Before we discuss what’s happening in this space, let’s take a look at the profile of the industry.

In March 2016, the Reserve Bank of India (RBI) issued the first draft on P2P lending for consultation with the stakeholders. The licensing norms were finalised