Arti Singh Profile picture
Nov 18, 2021 8 tweets 3 min read Read on X
RBI has released a report on digital lending through online platforms and mobile apps. Interesting datapoints and reccommendations on digital lending and neobanks too. Let me start with #Isaiditfirst line :) [Thanks to a kind soul for sharing this with me 🙂]
I have been reporting about how foreign lending players are entering India and borrowing NBFC licences. There are many NBFCs which were offering their NBFC as a service. I have been writing about this model since ET Prime days. One gfx that explains it better:
Now, coming back to the RBI paper. Some stats on digital lending.
Illegal loan apps.
BNPL share in types of loans is growing like crazy. The paper recommends: 'A separate product category in the consumer credit information file should be
created to report Buy Now Pay Later Loans.'
The paper suggest formation of SROs for digital loan apps. [Now, only time will tell if Nandan Nilekani is already onto it ;)]
Regulation for neobanks. This will surely get all the fintech founders and investors thinking 🤔
Will share some more soon...

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Arti Singh

Arti Singh Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @artijourno

Jul 22, 2023
After telecom and retail, this time Reliance Jio has set its eyes on the financial services market. Before understanding JFS' digital lending play, it is important to know that this is not the first time that the group is trying its hands at #fintech.
A long thread 👇
It has time and again made several fintech bets over the years – but most of which did not go beyond the trial stage. It's first bet was into payments. Jio formed payments bank, in partnership with SBI in April 2018. Even after 5 years, the bank is yet to see a formal launch.
It would be interesting to see if Jio has decided on the model already and if this business will fulfill the payments ambitions of Reliance – on the back which it can lend better – or will it discontinue its payments bank business.
Read 23 tweets
Aug 10, 2022
Much awaited digital lending guidelines from RBI is out. The important point is that RBI is yet to decide on FLDG.
Here are recommendations (from Working Group on digital lending) accepted for "immediate implementation" 👇@livemint #digitallending #fintech
- REs (registered entities) have to ensure that all loan servicing, repayment, etc shall be executed directly in their bank account without any pass-through account/ pool account of any third-party.
- REs to ensure that any fees payable to LSPs is paid directly by them (REs) and not by borrower.
3) All-inclusive cost of digital loans as an Annual Percentage Rate (APR) to be disclosed upfront by REs.
Read 22 tweets
Nov 18, 2021
FOMO post. My fintech reporting started with a small yet my first break on Paytm when I was with VCCircle. Since then hv written several stories...at one point I even joined Paytm (for 2 months) until the realization hit that I can't stay away from journalism :) Some stories👇
Read 13 tweets
Sep 15, 2020
First the banks were reluctant to be on UPI; then after realizing there's some name and fame involved, they welcomed UPI with open arms; now they want to stay away from the economically unviable UPI. Read the cost and conflicts of UPI @MorningContext. themorningcontext.com/how-upi-has-tu…
Ever since CBDT asked banks to refund the fee that they started charging their customers for UPI #payments (post MDR ban), banks has been complaining that consumers are abusing the system, thanks to cashbacks.
“Volume wise, UPI accounts for close to 48% of total digital payments volume, while value wise, it is just 2%. This only shows that a lot of Rs 510 kind of txn is happening may be just to get some cashback from UPI app – which is total misuse of the system, says bank official.
Read 9 tweets
May 28, 2020
This story is about Minance and its founder Anurag Bhatia - and all it was doing in the name of a fintech startup.
Few more tidbits 👇prime.economictimes.indiatimes.com/news/76048321/…
Minance did not have an IA licence until Feb 2019. "But, Anurag used to tell investment managers that if somebody asks, tell them we have the licence," an employee said.
By 2018 end, Minance was "close to a 40-member team and new systems being bought, new salespersons joining got brand new MacBook Pro and investment managers got MacBook Air." In 2019 Jan, moved to a new office space close to Rs 3 lakh monthly rental from Rs 1 lakh/rental.
Read 8 tweets
Jan 24, 2020
Since #zeroMDR is the talk of the town now, here are some thoughts on how these decisions are impacting NPCI:
- IBA has asked NPCI to scrap switching fees. The argument seems fair because if banks/fintech cos are not earning anything, they would definitely mind paying any fee to NPCI or any entity
- In the name of promotion, the govt is actually killing UPI, Rupay. UPI no longer needs promotion. A case in point: Razorpay's PG biz saw UPI (as payment mode) contributing 38% to total txns as compared to Debit/Credit Cards (46%) in 2019. In 2020, UPI will overtake cards
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(