Fintech Companies - MUST READ

Happy Weekend everyone!

Today I am back with another weekly update for the Fintech Companies.

Covering updates in the regulatory or economic side of the Fintech market for Indian companies.

If you run a Fintech Company in India.

Or you plan on expanding your Fintech Company in India.

Then this becomes important for you.

Here are the main things that happened in the last week.

A) Emerging Trends

1) Fibe Secures $35M IFC Investment in Series F Round

Funding Milestone:

• Fibe, Pune-based digital lending fintech, raised $35M from IFC (World Bank Group) in Series F on December 9, 2025, per Business Standard and Economic Times.

• Follows $90M Series E (June 2024, TR Capital/Trifecta/Amara); total equity >$266M (TPG Rise, Norwest, Eight Roads, Piramal, Chiratae).  

Strategic Use:

• Enhances product suite (personal/healthcare/edtech loans, insurance/school fee financing); Mehrotra (MD/Group CEO): "Impact-led solutions for millions."

• Fakhoury (IFC Regional Director): "Expands responsible financing for underserved, especially women."  

Why It’s Empowering:

• Founded 2015 by Mehrotra/Goyal; 9M+ loans disbursed; focuses human capital/inclusive growth.

• Aligns with India's $109.6L Cr consumption loans surge.  

2) Groww Obtains SEBI License for Online Bond Platform Operations

Regulatory Clearance:

• Groww secured Online Bond Platform Provider (OBPP) license from SEBI on December 10, 2025, enabling retail corporate bond offerings, per Economic Times and Mint.

• Diversifies from broking/wealth (Fisdom acquisition)/credit/NBFC/AMC (Indiabulls).  

Market Positioning:

• Competes with Wint Wealth/Jiraaf/Grip; Keshre (CEO): "Cater to 3L affluent customers."

• NSE RFQ: Transactions up to 1.55L (October 2025 from 43K April); NSE 90% OBPP share.  

Why It’s Diversifying:

• Post-₹93K Cr listing (November 12); founder: "Beyond MF/stocks."

• Taps fixed income demand amid alternatives growth.  

3) Fino Payments Bank Gains RBI Nod for Small Finance Bank Transition

Approval Breakthrough:

• Fino Payments Bank received RBI's in-principle approval on December 5, 2025, to convert to Small Finance Bank, first payments bank eligible under 'on-tap' guidelines, per Economic Times and Business Standard.

• Applied 2023; Gupta (MD/CEO): "Historic for technology-led inclusion."  

Operational Strength:

• 16M customers (September 2025), 2M+ merchants (97% pin codes); deposits ₹2,300 Cr (1.9% cost); Q2 FY26 profit ₹15.4 Cr.

• Merchant (CFO): "Differentiated SFB via low-cost liabilities/secured assets."  

Why It’s Evolutionary:

• Unlocks lending from deposit-only; lean/phygital model; value for stakeholders.

• Follows AU SFB's universal nod; boosts mass banking.  

B) Economic Highlights

1) UPI Hailed as Global Leader in Real-Time Payments by IMF

IMF Recognition:

• IMF's June 2025 report "Growing Retail Digital Payments" named UPI world's largest real-time system by volume; ACI Worldwide 2024: 129.3B transactions (49% global), per Adda247 and Business Standard on December 10.

• Top 5: India (49%), Brazil (14%), Thailand (8%), China (6%), South Korea (3%).  

Enabling Policies:

• PIDF: 5.45 Cr touchpoints; BHIM incentive for low-value; RuPay/UPI in utilities/e-commerce/transport; 56.86 Cr QR codes (6.5 Cr merchants).

• FY24-25 growth drivers: Inclusion for small/rural merchants.  

Why It’s Transformative:

• Instant/free payments vs. fees/delays; DBT leak reduction; G20 showcase.

• Blueprint for inclusive systems; next: Cross-border/digital currency.  

2) Airpay Receives RBI Nod for Comprehensive Cross-Border Aggregation

License Scope:

• Airpay Payment Services gained RBI approval on December 11, 2025, for cross-border aggregator under unified framework, covering online/physical/international, per Devdiscourse and Business Standard.

• Full-stack for Indian/global enterprises; 30-40% volume growth projected, 50K+ merchants.  

Strategic Impact:

• Revenue boost from cross-border; complements domestic strengths.

• Aligns with $120B annual fees reduction via digital rails.  

Why It’s Globalizing:

• Enhances seamless merchant experiences; positions in India's $1.2T payments ecosystem.

• Supports exporters/SMEs in dynamic markets.  

C) Business Developments

1) RBI Deputy Governor Outlines Six-Point Agenda for Banking Resilience

Synergy Emphasis:

• RBI Deputy Governor Swaminathan J presented a six-point plan on December 1, 2025, at Standard Chartered's "Success Through Synergy" event, stressing collaboration amid complex risks, per ANI and Business Standard.

• Traditional risks (credit/market/liquidity) more interconnected; new threats: Cyber, climate, reputational.  

Partnership Vision:

• Bank-fintech as "batting partnership": Banks provide trust/compliance/risk cycles, fintechs agility/innovation; "Structured partnerships" key.

• Customer expectations human: Simple products, quick resolutions, inclusive design.  

Why It’s Forward-Looking:

• Risk central to strategy; cloud outages impact millions; fraud detection/sharing vital; literacy for digital safety.

• Governance/ethics/people foundational; Laxman in attendance.  

2) In-Solutions Global Rolls Out Biometric Auth Solution Amid Fraud Surge

Product Launch:

• JP Morgan-backed In-Solutions Global introduced ISG Authify on December 10, 2025, with Giesecke+Devrient, replacing passwords/OTPs with passkey biometrics, per Free Press Journal.

• One-tap flow; private key device-bound, phishing-resistant; FIDO-compliant.  

Market Need:

• Digital frauds tripled to ₹36,014 Cr; RBI's April 2026 guidelines loom; Jain (CPO): "Frictionless, OTP-less e-commerce."

• Castelino (Co-founder): "Redefines digital trust"; Bhatnagar (G+D): "Leap from vulnerable PINs."  

Why It’s Timely:

• Bank/app integration; scales with UPI's 20B transactions; enhances security for merchants/consumers.

• Positions ISG in compliance-first infra.  

3) Wise Opens Waitlist for Transparent Travel Card in India

Card Teaser:

• Wise launched waitlist for Wise Travel Card on December 8, 2025, at GFF Mumbai, with Keir Starmer reference to UK-India fintech ties, per Business Standard.

• Mid-market rate (Google rate), small upfront fee, no hidden markups; 40+ currencies, instant switch.  

User Conveniences:

• Digital onboarding (Digilocker/video KYC); digital cards immediate, physical delivered; top-up IMPS/NEFT/RTGS.

• Bhardwaj (South Asia Lead): "Seamless as domestic UPI abroad."  

Why It’s Cost-Saving:

• Targets $17B travel spend; saves ₹17.5K on ₹5L trip vs. bank cards; no branch/paperwork.

• Priority for early sign-ups; challenges airport exchanges/bank forex.  

D) Regulatory Insights

1) RBI Proposes Enhanced FX Transaction Cost Disclosures for Retail Users

Draft Proposal:

• RBI issued draft circular on December 13, 2025, mandating Authorised Dealers disclose all transaction cost elements (remittance fees, conversion charges, spreads, deductions) for retail FX cash/spot contracts, per RBI release.

• Builds on January 2024 mid-market bid/ask for derivatives; pre-execution visibility, confirmation inclusion.  

Consultation:

• Feedback by January 9, 2026; aims transparency/fairness, reduce disputes.

• Aligns global practices; empowers retail (individuals/small enterprises).  

Why It’s Consumer-Centric:

• Tackles hidden fees in remittances/travel; improves informed decisions.

• Boosts trust in ADs amid $125B diaspora flows.  

2) RBI Fines Yavatmal Urban Co-operative Bank ₹2.25 Lakh

Penalty Details:

• RBI imposed ₹2.25 lakh on Yavatmal Urban Co-operative Bank on December 4, 2025, for breaching concentration risk, wilful defaulters treatment, credit reporting directions, per RBI release.

• Based on March 31, 2025, inspection; charges: Excess nominal member loans; delayed wilful defaulter CIC reporting.  

Process:

• Notice, reply, hearing under BR Act Sections 47A/46/56 and CIC Act Sections 25/23; compliance-focused, not transactions; further actions possible.

• RBI: "Regulatory deficiencies."  

Why It’s Risk-Mitigating:

• Curbs exposure/nominal lending in Maharashtra UCB; timely defaulter reporting for ecosystem.

• Protects depositors amid co-op scrutiny.  

3) RBI Penalizes Assam Co-operative Apex Bank ₹50,000 for KYC Lapse

Penalty Imposition:

• RBI fined Assam Co-operative Apex Bank ₹50,000 on December 1, 2025, for violating KYC directions, per RBI release.

• NABARD's March 31, 2025, inspection; charge: No periodic (6-month) risk categorization review.  

Enforcement:

• Notice, reply, hearing under BR Act Sections 47A/46/56; targets compliance gaps; additional measures possible.

• RBI: "Deficiency in regulatory compliance."  

Why It’s Preventive:

• Ensures dynamic risk profiling in apex co-op; supports AML in Northeast.

• Reinforces periodic reviews for customer safety.  

4) RBI Revokes Registration of Four NBFCs

Cancellation Orders:

• RBI cancelled CoRs of four NBFCs on November 4-10, 2025, under RBI Act Section 45-IA(6), per RBI release.

• Companies: Gem Investments (Kolkata), Shri Lakhavi Financial (Chandigarh), Vistar Financiers (Kolkata), Ambica Barter (Kolkata).  

Impact:

• Prohibits NBFI business per Section 45-I(a); dates: August 1998-July 2005 issuances.

• Streamlines sector; removes non-operational entities.

Why It’s Cleanup:

• Ensures viable players only; protects public amid 9,000+ NBFCs.

• Reflects ongoing rationalization.  

I hope this was useful to you guys working in the Fintech Space.

The fintech space is everchanging, so staying up to date with information will help you make smart decisions for your business.

Again, If I see any notable changes or updates on the Fintech Side during the week, that can help Fintech Companies, I will compile them.

And then share them on the weekends!

Btw - I run a legal firm that's a one-stop solution for Fintech Companies in India.

Whether you are starting out in India, or expanding to the Indian market, DM 💬 me if you need legal help with:

1) Business Registration

2) Contract Drafting or Review

3) Compliance

4) Answering any legal questions

See you tomorrow with another Newsletter now.