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Who has received a non-banking financial company (NBFC) license from the Reserve Bank of India?
A)
InstantPay
B)
FamPay
C)
Jupiter
D)
Fi Money

Correct Answer :   Jupiter


Neobanking platform "Jupiter" has secured a non-banking financial company (NBFC) licence from the Reserve Bank of India to enter into the lending business, a move which will double its disbursal rate for the year, founder of Jupiter Jitendra Gupta..

* "We were lending in partnership with an NBFC under the Loan Service Providers (LSP) model, but the process is very cumbersome. It is not an easy model to make economic revenue. With the new licence we will be able to scale our business fast," said Gupta.

* The startup will be offering the loan under Amica Financial Technologies, the private entity which operates Jupiter, Gupta said. "With this licence, we will have better control of destiny, have the direct integrations for the KYC and will be easier access and offer better to customers and chase scale in a very formal way," he added.

* Gupta also said that the license will help in addressing the many uncertainties and overcome regulatory hurdles.

* "Today under the Digital Lending Guidelines there are some grey areas around FLDG (First Loan Default Guarantee), scrutiny on what is allowed and not allowed in digital lending, loan app bans...There are so many uncertainties and with the licence, we can get this out of the way," Gupta said.

* To date, the company disburses small ticket loans of less than Rs 50,000 with a tenure of 3-6 months through Trillion Loans NBFC. However, with the new NBFC licence, Jupiter will look at offering loans from Rs 50,000 up to Rs 1 lakh...

Source : Money Control

Published On : April 26, 2023
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