Page 8 - Banking Finance September 2024

RBI CORNER

prompted to re-login, according to
Master Directions on Cyber Resilience Reserve Bank tightens norms for NBFC-P2P lending
and Digital Payment Security Controls platforms
for non-bank PSOs. The Reserve Bank of India (RBI) tightened norms for Non Banking Financial
The Reserve Bank has also prescribed Company-Peer to Peer Lending Platforms (NBFC-P2P Lending Platform) to
a phased implementation to provide improve transparency and compliance.
adequate time to PSOs to put in place As per the revised master direction issued by the RBI, a P2P platform should
the necessary compliance structure. not promote peer-to-peer lending as an investment product with features

RBI said the directions aim to improve like tenure-linked assured minimum returns, liquidity options, etc.
safety and security of the payment sys- NBFC-P2P Lending Platform should not cross-sell any insurance product also,
tems operated by PSOs by providing a which is in the nature of credit enhancement or credit guarantee, it said.
framework for overall information se- No loan should be disbursed unless the lenders and the borrowers have been
curity preparedness with an emphasis
matched/mapped as per the board-approved policy framed, it added.
on cyber resilience.
The RBI issued guidelines for P2P lending in 2017. Such a platform acts as
Regarding mobile payments, RBI said an intermediary providing an online marketplace/platform to the partici-
PSOs should ensure that an authenti- pants involved in peer-to-peer lending.
cated session, together with its encryp-
tion protocol, remains intact through- However, it has been observed that some of these platforms have adopted
out an interaction with the customer. certain practices, which were violative of the provisions of Master Direc-
tion 2017.
"In case of any interference or if the
customer closes the application, the
session shall be terminated, and the RBI decision on 14-year, As per the calendar issued by RBI in
affected transactions resolved or re- 30-year tenors G-Secs April, FPI limit of Rs 2,67,890 crore for
versed out," it said. Reserve Bank excluded government G-Sec General and Rs 1,36,890 crore
for G-Sec Long Term category for the
securities (G-Sec) of 14-year and 30- current fiscal.
RBI okays Tata Capital con- year tenors from the Fully Accessible
version to NBFC-ICC Route (FAR) for foreign portfolio inves- As of now, all investments by eligible
tors. investors in the 'specified securities' is
The Reserve Bank of India (RBI) has reckoned under the fully accessible
approved Tata Capital Limited's (TCL) On a review and in consultation with route (FAR).
conversion from a non-banking finance the government, it has been decided The limit for FPI investment in govern-
company (NBFC)-core investment com- to exclude all new securities of 14-year ment securities is currently 6 per cent
pany (CIC) to an NBFC-investment and 30-year tenors from the Fully Ac- of outstanding stocks of securities for
credit company (ICC). cessible Route, RBI said in a notifica-
tion. Consequently, future issuances of the current fiscal.
This follows TCL's merger with Tata Government Securities in these tenors
Cleantech Capital and Tata Capital Fi- would not be available for investment RBI issues two-factor
nancial Services. The change signifies under the Fully Accessible Route, it
Tata Capital's transformation into an said. check norms
operating company, paving the way "Existing stocks of Government Secu- RBI has said that any alternative to the
for its potential listing. Previously, it SMS-based OTP as an additional factor
rities in 14-year and 30-year tenors
functioned as a holding company under already included as 'specified securi- of authentication should be dynami-
the CIC structure. cally generated.
ties' under the Fully Accessible Route
TCL had earlier announced the merger shall, however, continue to be available RBI came out with guidelines for 'alter-
of Tata Motors Finance Ltd with itself, under the Fully Accessible Route for native authentication mechanisms for
effective April 1, expected to be com- investments by non-residents in the digital payment transactions' where it
pleted within 9-12 months. secondary market," it said. listed specifications for the alterna-

8 | 2024 | SEPTEMBER | BANKING FINANCE