P2P firms seek life support as tough regulations sink businesses

The fledgling peer-to-peer (P2P) lending industry is seeking regulatory relaxations from the Reserve Bank of India (RBI) on stringent payment processing norms, as most major platforms struggle to keep their businesses afloat.

Industry executives told ET that overall assets under management through non-banking financial company P2Ps have plunged more than 85% to about Rs 1,500 crore from more than Rs 10,000 crore a year ago.

The sector was first brought under RBI regulation in 2017. But in August and September 2024, the central bank issued…