Neobanking startup Fi, backed by investors such as Peak XV and Temasek, has secured a non-banking finance company (NBFC) licence from the Reserve Bank of India.

Banking & Finance

Neobanking startup Fi, backed by investors such as Peak XV and Temasek, has secured a non-banking finance company (NBFC) licence from the Reserve Bank of India. With this, Fi has joined the likes of Jupiter, Groww and Cred, all of which got into the lending business either by getting a fresh licence or by acquiring another NBFC. Acquiring an NBFC licence empowers fintechs to offer loans from their own books, thus establishing an asset base. Without this licence, they are limited to acting as intermediaries to connect borrowers with banks and other NBFCs.


      In recent years, fintech startups have pursued NBFC licences to streamline their entry into lending, given the RBI's stringent regulations on online credit disbursal.

     

     

 

     


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