FinTech news in Reserve Bank of India category

Option may be provided for borrowers to accept or deny consent for use of specific data, including option to revoke previously granted consent, besides option to delete the data collected from borrowers by the DLAs/ LSPs. Regulated entities will also be required to ensure that loan service providers they engage with have appointed a nodal grievance redressal officer to address complaints lodged against fintech startups or other digital lending firms, the guidelines add. The Reserve Bank of India has published guidelines that it intends to enforce for digital lending firms, recommending more transparency and control to customers as the South Asian nation central bank moves to take further steps to crack down on sketchy practices and creditors. The central bank also suggested that consumers should be provided with an option to accept or deny consent for use of any specific data and also the ability to revoke any previously granted consent and delete historic collected data.

Payments giants and fintech startups in India on Saturday requested the central bank to treat widely used prepaid payment instruments on par with bank accounts for customers who have undertaken certain verifications, days after the monetary authority signalled industry-wide crackdown. The Payments Council of India, a unit of influential industry body IAMAI, said in a \[…\]

The Reserve Bank of India has informed dozens of fintech startups that it is barring the practice of loading non-bank prepaid payment instruments (PPIs) — prepaid cards, for instance — using credit lines, in a move that has prompted panic among — and existential threat to — many fintech startups and caused some to compare the decision to China’s crackdown on financial services firm last year.