RBI’s liquidity handouts are a mirage for fintech

The central bank’s big initiatives meant to deliver cheap credit to lenders in a crisis—but fintech NBFCs have seen little of it.

The COVID-19 pandemic has not been kind to companies in the business of lending.

It has been especially hard on non-bank lenders, including fledgling fintech startups. The economic fallout of the pandemic and subsequent lockdowns and restrictions across India have seen credit demand dry up, meaning fewer new loans; at the same time, many a customer took the central bank’s offer of delaying their loan repayments, meaning interest income goes down for lenders.

They also found themselves in a liquidity crunch, and to top it all off, fintech lenders and other non-banking financial companies, or NBFCs in banking parlance, were …


Arti Singh

Arti is a former writer at The Morning Context. She previously worked with publications such as ET Prime, VCCircle, Firstpost and EETimes. Arti has keenly tracked the evolution of financial technology in India and written some of the defining pieces on the ecosystem as it birthed and matured. Even when not writing about it, she loves to dissect the revenue models, margins and regulations that are shaping the sector.