The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 16.60 lakh on Visionary Financepeer Private Limited for non-compliance with certain provisions of the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. The penalty was issued through an order dated February 25, 2025, under the Reserve Bank of India Act, 1934.
The penalty follows an RBI scrutiny conducted in September 2023, which identified multiple instances of non-compliance. The company was issued a show-cause notice, and after reviewing its response and submissions, RBI confirmed the violations.
Key compliance failures by Visionary Financepeer Private Limited include:
Disbursing loans without specific approval from individual lenders and without ensuring that a loan agreement was signed between lenders and borrowers.
Failing to disclose required borrower details to lenders.
Lacking a Board-approved policy for pricing its services.
Not ensuring that agreements with service providers included RBI inspection rights and failing to conduct annual reviews of these service providers.
Assuming partial credit risk, which is beyond the permitted scope for NBFC-P2P companies.
RBI clarified that the penalty is for regulatory deficiencies and does not affect the validity of transactions between the company and its customers. Additionally, the central bank may take further actions if required.