Emory International Law Review


Almost half of India still does not have a bank account, leaving millions of Indians unable to access traditional sources of credit. For these unbanked Indians, peer-to-peer (P2P) lending platforms have become an important alternative credit source. A recent boom in P2P platforms caused the Reserve Bank of India (RBI) to create a regulatory framework for the P2P sector. This Comment seeks to address some of the issues concerning regulating an unconventional industry that provides a crucial service. First, it is argued that the RBI fundamentally mischaracterizes both the services P2P's provide, and how P2P's provide these services. The Comment then discusses challenges P2P regulation poses for the RBI, arguing that the RBI's framework both over- and underregulates P2P platforms. Finally, this Comment recommends India adopt U.S. P2P regulations, allowing for an exemption-based approach to lending. Given that alternative credit is much needed in India, this comment hopes to better tailor current regulations, in order to avoid a total regulatory overhaul.