Non-banking finance companies (NBFCs) operating in the digital lending space have requested the Reserve Bank of India’s permission to offer pre-approved credit on the United Payments Interface (UPI) platform. The central bank had earlier opened the UPI platform for small finance banks. NBFCs believe that being included in this list will allow them to offer credit lines more efficiently and cost-effectively, making it easier for customers at the bottom of the pyramid to access credit. They also argue that their high-tech and low-cost model using UPI-based lending can offer small loans. The RBI has a designated day for monthly interactions with the fintech industry, known as “finteraction”, where such requests are being made. While the RBI has extended credit on UPI to small finance banks, it remains to be seen if they will extend the scope to fintech NBFCs as well.
FinTechs seek Reserve Bank of India approval for credit lines on Unified Payments Interface (UPI) platform.
by newsworm | Dec 18, 2024 | Banking, Central Bank of India, RBI | 0 comments