Archive · 29 Jun 2025
RBI Returns LenDenClub's NBFC Application Amidst Industry Woes
The Reserve Bank of India (RBI) sent back LenDenClub's application to become an NBFC, which is like a special type of financial company.
This happened about a year ago, before new rules were put in place.
LenDenClub says they are focusing on their original P2P business, which connects people who want to lend money with those who want to borrow.
Because of the new rules from RBI, many similar businesses are struggling, with less money being lent out.
An ex-RBI person mentioned that if P2P companies start acting like regular lenders, the RBI will take a close look at them.
RBI 'returned' LenDenClub's NBFC license application.
The application was returned about a year ago, before updated guidelines.
LenDenClub stated they are focusing on their core P2P business.
Industry assets have reportedly fallen significantly due to new RBI guidelines.
An ex-RBI official suggests P2P exchanges shouldn't operate like lenders.
- Who
- The Reserve Bank of India (RBI) and LenDenClub.
- What
- RBI 'returned' LenDenClub's NBFC license application.
- When
- Around a year ago, and the information was published on June 29, 2025.
- Where
- India
- Why
- The RBI may be uncomfortable with granting NBFC licenses to P2P entities. Also, the RBI was working on the overall structure of the sector.
RBI's Perspective (Implied)
LenDenClub's Perspective
Approach to P2P Operations
RBI's Perspective (Implied)
P2P businesses may face increased scrutiny if they operate like traditional lenders.
LenDenClub's Perspective
LenDenClub is focused on its core P2P business.
- Company
- LenDenClub
- License Application Status
- Returned
- Application Timeframe
- Completed licensing requirement in 2023
- RBI Action
- Returned, not rejected
- LenDenClub focus
- Core P2P business
- Industry Assets Decline
- 70-80% since March 2024
- LenDenClub Assets Under Management
- ~₹1,000 crore