The Reserve Bank of India (RBI) has granted a non-banking financial company (NBFC) licence to the Neobanking platform Jupiter enabling the latter to scale up its lending business.
- Earlier, Jupiter was lending in partnership with an NBFC under the Loan Service Providers (LSP) model.
Key Points:
i.It will be offering the loan under Amica Financial Technologies, the private entity which operates Jupiter.
ii.With this licence, Jupiter will have better control of destiny, have the direct integrations for the KYC (Know Your Customer) and will have easier access and offer better to customers and chase scale in a very formal way.
iii.With the new NBFC licence, Jupiter will look at offering loans from Rs 50,000 up to Rs 1 lakh.
iv.Jupiter provides a platform with a simplified user interface that allows users to deposit and withdraw funds. The company also offers debit and credit cards in partnership with traditional banks
Note: 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.
RBI cancels Adoor Co-operative Urban Bank’s banking licence, allows to operate as NBFC
On April 25, 2023, RBI has cancelled the banking licence of the Adoor Co-operative Urban Bank Ltd, Adoor, Kerala (initiated on January 3, 1987) to carry on banking business in India under Section 22 read with section 56 of the Banking Regulation Act,1949 with effect from the close of business on April 24, 2023.
- However, it is allowed to function as non-banking institution under Section 36 A(2) read with section 56 of the Banking Regulation Act, 1949.
Key Points:
i.The cancellation prohibits the bank to conduct business of ‘banking’ within the meaning of section 5(b) of the Act ibid, including acceptance of deposits from non-members with immediate effect.
ii.The Adoor Co-operative Urban Bank Ltd should ensure to repay unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as non-banking Institution.
Recent Related News:
i.On March 02, 2023, considering the deteriorating financial condition of Musiri Urban Co-operative Bank Ltd., Musiri, Tamil Nadu, the Reserve Bank of India (RBI) has imposed a Rs 5,000 cap on withdrawals by individual customers.
ii.RBI granted Infrastructure Finance Company (IFC) status to the Indian Renewable Energy Development Agency (IREDA) enabling the latter to take higher exposure in RE (Renewable Energy) financing.
About Reserve Bank of India (RBI)
Governor – Shaktikanta Das
Deputy Governors – Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar
Establishment – 1st April 1935
Headquarters – Mumbai, Maharashtra
