MobiKwik NBFC Approval: RBI Nod for Direct Lending Arm
Why in the news
The RBI cleared fintech firm MobiKwik to open its own NBFC arm, moving it from merely connecting borrowers with banks to lending itself.
Key facts
- Parent: One MobiKwik Systems Limited; new NBFC: MobiKwik Financial Services Private Limited.
- Shift: from Lending Service Provider (LSP) to direct lender.
- Rules: Scale-Based Regulations; NOF ₹10 crore (existing NBFCs have till March 31, 2027).
- Operations begin only after the final Certificate of Registration (CoR).
- Also subject to the Fair Practices Code, capital adequacy norms and recovery guidelines.
Strategic advantages
- Lending from its own balance sheet to keep the full interest margin.
- Own data and algorithms for underwriting, instead of a partner bank’s rules.
- Faster launches of products such as BNPL and merchant advances.
- Completes its “Super App” journey: payments, investments and now regulated credit.
| Segment | Product |
|---|---|
| Individuals | Personal loans and BNPL |
| Small merchants | Digital loans based on QR-code transaction history |
| MSMEs | Working capital loans |
Background
- The lending arm targets the credit gap in Tier 2 and Tier 3 cities.
- LSPs find customers but lend with a bank’s money.
- Underwriting: assessing lending risk, often with alternative data such as bill payments or shopping patterns.
- Full-stack platform: handles the whole value chain, from customer acquisition and payments to loans and investments, under one regulated roof.
Exam angle
- Key terms: LSP, NBFC, NOF ₹10 crore, CoR, BNPL.
- Relevant for RBI Grade B (NBFC regulation, fintech) and financial inclusion topics.