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Every transaction is validated multiple times on P2P platforms: Cashkumar

With the ease of digital transactions comes the threat of data theft.

, ET Online|
Mar 11, 2019, 02.57 PM IST
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Peer-to-peer (P2P) lending platforms facilitate lending and borrowing money online. With the ease of digital transactions comes the threat of data theft. ET.com spoke to Dhiren Makhija, CEO, Cashkumar, about the safety of personal and financial information shared on the P2P platforms. Excerpts below:

How safe is the data with a P2P platform?
RBI has asked P2P platforms to implement rigorous information security measures which are audited by an external party. Such measures include a restriction on copyable technology or devices within the office premises. The audit included testing for loopholes in the entire system with contingency plans built for every situation.

Before registering yourself on a P2P platform, make sure it is a secure website. If the site is secure http (https) it means all measures have been undertaken to ensure it is safe from external interference.

Customer data is stored on servers behind a firewall and accessible only to authorized staff. Separate user access has been created for different departments so that only relevant data is visible to them. All data with credit agencies is shared on secure tunnels thereby avoiding any data leak in transit.

Physical documents like agreements are stored in an accident-proof locker and can only be retrieved by relevant authorities. Regulations insist that all monetary transactions are undertaken by a trustee which creates another layer of security. The regulations require NBFC-P2P companies to have a thorough information security system which we have taken pains to implement.

What happens to loans that are listed but don’t find a lender?
In some cases, a loan might not be fully pledged on a platform. Reason for this might be a paucity of lenders on the platform or the borrower profile not being attractive to them.

Most platforms have a threshold level which provides an opportunity for the borrower to accept a lower amount. Cashkumar allows a borrower to accept the loan if at least 80 per cent of the approved amount has been funded. If for any reason this level is not reached, then the loan request is dropped and the borrower is informed accordingly.

How is the safety of data ensured both for lenders as well as borrowers?
Information shared by lenders with P2P platforms is not completely relevant to a borrower. They are identified in every transaction with a unique customer ID generated by the platform and represented as such.

Borrower details shared with the platform are for the purpose of underwriting and are kept confidential. Summarised information relevant to a lender to decide on a specific profile is revealed only at the time of approval of the loan.

What happens in case of a technical glitch?
We have systems and procedures in place which kick in if there is a technical glitch. Every transaction is validated multiple times before it is accepted on the system with a set of checks and measures in place.

However, if a transaction goes through despite of these checks, there are specific proprietary systems that trigger notifications to the respective teams, highlighting the issue and necessitating corrections. Some platforms have systems in place to detect any fraudulent practice and reverse the same immediately.

What are the chances of selling the data to a third party?
Licensed financial institutions do not commercialise data available with them. It is not just a breach of confidentiality which we promise to our customers but flouting of regulations. The regulator can cancel the license and take action in such a circumstance.
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