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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The regulator sees widely varying implementations of know your customer norms as a systemic problem.
Editor's note: There is an uneasiness setting in over the fintech industry. It has been less than a month since the Reserve Bank of India cracked down on the business model of many buy now pay later startups, prohibiting all lending institutions from issuing a credit line to digital wallets or prepaid cards. The RBI’s move—seen as an attempt to weed out one of the several regulatory ambiguities governing India’s young digital lending industry—has led to several high-profile startups having to alter their terms of service. In some cases, they even discontinued products overnight. That, however, is only the beginning of a series of impending actions aimed towards streamlining fintech regulations in coming months. According to five industry executives briefed on the matter, the next intervention in line is the tightening of know your customer and customer onboarding norms for fintech firms. According to the executives, the central bank has been engaging with the fintech industry, reviewing practices and seeking regular audit reports as part of its strategy to increase supervision of the rapidly evolving industry. The RBI is said to be …
The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
