P2P industry: When will RBI walk the talk?

The regulator has issued show cause notices to a few P2P platforms for certain practices. Let's see how they defend themselves and how the regulator reacts

The following incident succinctly sums up what’s happening on India’s peer-to-peer (P2P) lending landscape.

In May, Mr A invested Rs 10,000 to be lent to borrowers on a P2P platform, which we'll call Platform B. I'm not naming either the investor/lender or the P2P platform involved.

Mr A transferred the money on May 3, and the credit reflected on the P2P platform on May 9. 

He had chosen the “manual” option to invest. There is also an “auto” investment option. In the manual investment process, the investor picks the borrowers, and the platform follows the investor’s instructions. In auto investing,