Consider the following statements about Peer to Peer lending P2P P2P lending platforms are treated a...........

Economic and Social Issues Rural Banking and financial institutions

Consider the following statements about Peer to Peer lending (P2P)

P2P lending platforms are treated as Non-Banking Financial Companies.
It is regulated by Securities and Exchange Board of India.
It is a form of crowd-funding used to raise loans which are paid back with interest.

Which of the statements given above are correct?

(a) (b)

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

- Statement 1: P2P lending platforms are treated as Non-Banking Financial Companies (NBFCs) and are regulated by RBI. Correct.

- Statement 2: It is regulated by Securities and Exchange Board of India (SEBI). Incorrect. P2P platforms are regulated by RBI, not SEBI.

- Statement 3: P2P lending is a form of crowd-funding used to raise loans which are paid back with interest. Correct.

Options analysis:

- Option 1: 1 and 2 only – Incorrect, as Statement 2 is wrong.

- Option 2: 2 and 3 only – Incorrect, as Statement 2 is wrong.

- Option 3: 1 and 3 only – Correct, both are true.

- Option 4: All of the above – Incorrect, as Statement 2 is wrong.

Option 3: 1 and 3 only is correct.

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