Q. With reference to Peer-To-Peer Lending (P2P) consider the following statements:
1.It is the only form of crowdfunding which is regulated by the Reserve Bank of India (RBI).
2.It is a form of direct lending of money to individuals or businesses without the involvement of any financial intermediary like banks.
3.It involves a higher rate of interest than those offered by the unorganized sector.
Which of the statements given above is/are correct?

[A] 1 and 2 only

[B] 3 only

[C] 2 and 3 only

[D] 2 only

Answer: A
Notes:

Correct option is (A)

Statement 1 and 2 are correct. P2P is a type of crowdfunding which is regulated by the Reserve Bank of India (RBI). However, other crowdfunding such as equity, debt based and fund based- would fall under the purview of capital markets regulator (SEBI). It is a form of direct lending of money to individuals or businesses without the involvement of any financial intermediary like banks.

Statement 3 is incorrect. It involves a lower rate of interest than those offered by the unorganized sector or banks. However, there is a higher credit risk involved in P2P than banks.

Source: DNA