The fintech company One MobiKwik Systems has received the approval from the Reserve Bank of India for the Non-Banking Financial Company (NBFC) license. With this approval it marks the another milestone in the company’s history. This approval will allows the company to expand into the regulated lending and it will launch launch the dedicated financial services arm.
MobiKwik NBFC Licence Approved by RBI
The MobiKwik announced that its application for an NBFC license has been approved by the Reserve Bank of India.
This approval will enables the company to formally enter into the regulated lending space.
With this licence,
- MobiKwik can offer the loans directly.
- It also expand the its credit product portfolio.
- It also operate under the regulated financial framework
This approval will reportedly came within the four months and showcases the regulatory’s confidence in the company.
Launch of MobiKwik Financial Services (MFSPL)
After the approval the MobiKwik will launch the new lending division.
MobiKwik Financial Services Private Limited (MFSPL)
It is the wholly owned subsidiary
This new entity will focus on to the designing the custom credit products, also serving the both consumers and merchants and it will expands the digital lending capabilities.
This will marks the strategic shift from payments to the full-scale financial services.
What Company Leadership Said
According to Upasana Taku the approval is the important milestone in the company’s evolution.
She highlighted that,
- This approval will strengthens the MobiKwik’s credibility.
- It will enables transition into the scalable financial platform.
- It opens the new avenues for growth and innovation.
The quick approval timeline will also reflects the trust from the regulator.
Strong Customer Base and Tech Advantage
MobiKwik already has the large digital ecosystem in which it will support its lending expansion.
Key strengths includes the,
- Over 18.6 crore users
- Had the advanced technology infrastructure.
- Also have the strong risk underwriting systems.
What is an NBFC?
It is the Non-Banking Financial Company (NBFC) is a financial institution which regulated by the RBI.
- They can provides loans and credit facilities.
- Also offers the services similar to banks.
- It operates without the full banking license.
NBFCs have play a crucial role in to expanding credit access and specially in underserved segments.
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