One of the top NBFCs, Mufin Finance, has received preliminary authorisation from the RBI to issue semi-closed prepaid payment instruments. Digital banks, fintech companies, and major consumer-facing applications are able to introduce features like digital payment solutions for lending thanks to a semi-closed PPI licence. Following well-known companies like Bajaj Finserve, Manapurram, and Paul Merchants, Mufin Finance is the fourth NBFC to get a similar licence from the RBI.
- The company is currently putting the groundwork in place for the launch of MufinPay, a digital payment solution that will support its lending operation.
- Mufin Finance, which was founded in 2016, wants to use the MufinPay platform to better service its 50,000+ customers and bring on new users.
- Digital wallets, smart cards, magnetic chips, and vouchers are all examples of PPI. PPI serves as a store of value that may be used to purchase products and services as well as transfer money.
- PPIs come in the shape of gift cards, payment wallets, smart cards, and vouchers. Debit cards, on the other hand, can only be issued to banks and require an open PPI licence.
- Last August, the RBI approved expanded PPI usage, including cash withdrawal of fully KYC PPI. Recent limits on lending through non-bank PPIs were put in place by the RBI.
About Mufin Finance:
Since its founding in October 2016, Mufin Finance has developed into a full-service provider of financial services, offering consumers working capital, personal loans, SME loans, and auto financing. They operate without paper and have state-of-the-art loan origination and loan management systems. They have operations all throughout India, are present in seven states, and manage the assets of more than 150 FinTech & Tech partnerships. Since its founding, the company has disbursed loans totaling almost INR 1500 crores. Their main goals are to serve the underserved market and become one of India’s top Fintech Enablers by focusing on social and green impact loans.