The new playbook: RBI steps in to stem the nexus between banks and fintechs

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

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 plate to hawk mobile financial services. In 2009,