Jupiter, a neobanking startup, has obtained a non-banking finance company (NBFC) license from the Reserve Bank of India (RBI), enabling the company to provide credit from its own resources. According to Jitendra Gupta, the founder of Amica Financial Technologies Ltd., which operates Jupiter, the company will appoint a professional chief executive officer to manage the NBFC operations.
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Significance of the NBFC licence:
This is a significant development for Jupiter as the company has been expanding its lending operations through partnerships with NBFCs. With the NBFC license, Jupiter will have more control over its lending operations and will be able to offer credit directly from its own books, providing greater flexibility and control over the lending process.
About Jupiter: A Neobank:
Jupiter is a neobank, a type of digital bank that operates entirely online without any physical branches. It was founded in 2019 by Jitendra Gupta, who previously co-founded Citrus Pay, a payment gateway company that was acquired by PayU in 2016.
NBFCs, or non-banking financial companies, are financial institutions that provide a range of financial services but do not hold a banking license. They are regulated by the Reserve Bank of India (RBI) and are subject to certain regulations and restrictions, but they are not allowed to accept demand deposits or issue cheques.
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