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Fintechs generally collaborate with banks to issue cards before partnering with non-banking financial institutions or operating their own NBFC business to provide credit lines to consumers. The Reserve Bank of India has prohibited fintech companies from loading credit lines into non-bank prepaid payment instruments (PPIs). Lending has always been the end goal for practically all fintech firms. This week's warning from India's central bank threw a kink in the system, calling into question who can lend to whom. The Reserve Bank of India has informed dozens of fintech startups that it is prohibiting the use of credit lines to load non-bank prepaid payment instruments (PPIs) — such as prepaid cards — in a move that has caused panic among — and an existential threat to — many fintech startups, prompting some to compare the decision to China's crackdown on financial services firms last year. PPI licenses have long been utilized by several firms, including Slice, Jupite...

Customers have been approached by loan collection personnel at unusual hours and using harsh language, according to RBI governor Shaktikanta Das; 'this is unacceptable.' Governor of the Reserve Bank of India (RBI) Shaktikanta Das announced on Friday that the central bank would provide guidelines and steps soon to ensure the safety of the digital lending ecosystem while also improving client protection and fostering innovation. He went on to say that as people utilize technology and digital services more, there are more instances of digital fraud and customer unhappiness. He also stated that the RBI Working Group's views on digital lending are being considered for the issue of guidelines. The RBI says a Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) was recently formed. The committee will, among other things, examine the customer service landscape's developing and evolving demands, particularly in the context of ...

Customers have been approached by loan collection personnel at unusual hours and using harsh language, according to RBI governor Shaktikanta Das; 'this is unacceptable.' Governor of the Reserve Bank of India (RBI) Shaktikanta Das announced on Friday that the central bank would provide guidelines and steps soon to ensure the safety of the digital lending ecosystem while also improving client protection and fostering innovation. He went on to say that as people utilize technology and digital services more, there are more instances of digital fraud and customer unhappiness. He also stated that the RBI Working Group's views on digital lending are being considered for the issue of guidelines. The RBI says a Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) was recently formed. The committee will, among other things, examine the customer service landscape's developing and evolving demands, particularly in the context of ...

The Reserve Bank of India says it has been studying the advantages and disadvantages of introducing in India a CBDC,  which is a digital form of legal money issued by a central bank. The central bank plans to introduce the CBDC in a phased manner. The Reserve Bank of India stated in its annual report issued on Friday, May 27, that it will adopt a "gradual approach" to introducing the Central Bank Digital Currency. It said that the design of the central digital coin must be consistent with its monetary policy objectives, financial stability, and the efficient functioning of currency and payment networks. The RBI's announcement comes months after it stated that it was ready to begin testing and executing CBDC pilot programs. The Reserve Bank of India is working to introduce India's own digital currency or the CBDC. The currency must be designed in accordance with the stated objectives of monetary policy, financial stability, and the efficient functioning of c...

The RBI authorities indicated that bitcoin will have a detrimental influence on the country's financial sector while considering its consequences. While cryptocurrencies have the potential to replace the rupee as a medium of exchange in domestic and cross-border financial transactions, the RBI's capacity to oversee the flow of money will be jeopardized, according to central bank officials. Top Reserve Bank of India (RBI) officials are said to have informed a parliamentary panel that cryptocurrencies might lead to the " dollarization " of a section of the economy, which would be bad for India's national interests. Top RBI officials, including governor Shaktikanta Das, testified before the Parliamentary Standing Committee on Finance, which is led by former finance minister Jayant Sinha.They emphasized their reservations about cryptocurrencies, claiming that they represent a risk to the financial system's stability. While cryptocurrencies have the ...

The RBI authorities indicated that bitcoin will have a detrimental influence on the country's financial sector while considering its consequences. While cryptocurrencies have the potential to replace the rupee as a medium of exchange in domestic and cross-border financial transactions, the RBI's capacity to oversee the flow of money will be jeopardized, according to central bank officials. Top Reserve Bank of India (RBI) officials are said to have informed a parliamentary panel that cryptocurrencies might lead to the " dollarization " of a section of the economy, which would be bad for India's national interests. Top RBI officials, including governor Shaktikanta Das, testified before the Parliamentary Standing Committee on Finance, which is led by former finance minister Jayant Sinha.They emphasized their reservations about cryptocurrencies, claiming that they represent a risk to the financial system's stability. While cryptocurrencies have the ...