RBI red-flag: The tango between banks and fintechs set for a big change

With the RBI red-flagging mushrooming of digital apps, the tango between banks and fintechs may be in for a big change, report Hamsini Karthik and Raghu Mohan

Topics
Indian Banks | Fintech | Indian banking sector

Hamsini Karthik & Raghu Mohan  |  Mumbai 

Last week, the Reserve Bank of India (RBI) red-flagged the proliferation in digital lending platforms and fintech applications. “This in itself tells you a lot about the close association which has developed between banks and fintechs,” says Ajay Garg, founder-managing director of Equirus Capital.

To get a sense of what’s at play here, let’s step back and look at the early weld between electronic and mobile payment platforms almost a decade ago. In 2008, Telenor picked up a 51 per cent in Tameer Microfinance Bank in Pakistan; it got Telenor-Pakistan a banking ...

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First Published: Sun, January 17 2021. 19:48 IST
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