Fintech players’ fight for survival: Navigating India's regulatory maze for NBFC licences
We are pleased to share that our Partner, Jitendra Soni has been quoted by The Economic Times in an article titled, “Fintech players’ fight for survival: Navigating India's regulatory maze for NBFC licences”
The article analyses the impact of, Reserve Bank of India`s (RBI) move to critically assess the alliances between digital lenders (including buy now pay later or BNPL players) and NBFCs, particularly scrutinising the first-loss default guarantees (FLDGs) that digital lenders provided as a safety net for potential non-performing assets (NPAs), on the fintech industry.
Sharing his views on the consequences of the aforesaid move by the financial regulator, Jitendra stated that, “In addition to the FLDG capping, the digital lending guidelines from last year have compelled online lenders to be more transparent with their loan products, a move that the Reserve Bank of India (RBI) has mandated. The amount of charges and fees that may be levied has been ring fenced and if a fintech entity desires to have a wider net over the earnings, it now makes more commercial sense to become an actual lender rather than a mere aggregator of loans.”
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