Last Week's 13 Fintech Updates You MUST Know
Akhil Mishra
Daily tips from a Tech Lawyer | Fintech, IT, & SaaS Legal Specialist | Co-Founder @ MTLegal Team | Helping you stay ahead of legal risks with clear, practical solutions
Happy Monday 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) Fintech Evolution: New Trends and Market Moves
New Financial Services Brand: Trump Media and Technology Group (TMTG), parent of Truth Social, announced the launch of Truth.Fi, a fintech services arm focused on digital assets and investments.
Strategic Investments: The board has approved an investment of $250 million through Charles Schwab, covering ETFs, SMAs, Bitcoin, and other cryptocurrencies.
Political Influence on Crypto: Donald Trump's election and the rise of pro-crypto lawmakers have fueled Bitcoin’s growth, reinforcing his vision of making the U.S. the "crypto capital of the planet."
Regulatory Steps: Truth.Fi’s services are slated for a 2025 rollout, pending necessary financial approvals.
Executive Exit: Nakul Jain has stepped down as CEO and Managing Director of Paytm Payments Services (PPSL), effective March 31, 2025.
Pending Payment Aggregator License: The resignation comes as Paytm awaits RBI approval for its payment aggregator (PA) license, which was rejected in 2022 due to foreign direct investment (FDI) concerns.
Ongoing Investigations: Reports suggest the Enforcement Directorate (ED) is probing Paytm over a cryptocurrency scam involving Chinese nationals, though the company has denied any official communication from ED.
Series of High-Profile Exits: This follows the departures of Surinder Chawla (April 2024) and Bhavesh Gupta (May 2024), signaling instability in Paytm’s leadership.
Funding Demand: Rural-focused fintech startups are seeking ?500 crore in government support in Budget 2025 to improve financial inclusion.
Technology Upgrade Needs: Startups argue that each banking agent in rural India requires ?10,000 for basic tech enhancements like mobile ATMs and biometric devices.
Proposed IBCEF Fund: Industry leaders suggest launching an India Business Correspondent Equity Fund (IBCEF), similar to the India Microfinance Equity Fund (IMEF), to facilitate investments.
Push for Better Compensation: Fintech leaders urge the government to increase commissions for bank mitras, frontline banking agents who enable last-mile financial services.
Funding Boost: Peak XV Partners led a $7 million funding round for Ambak , a fintech startup simplifying home loan access.
Market Ambitions: The company aims to distribute $20 billion in home loans annually within five years.
Tech-Driven Growth: By integrating with 50+ lenders, Ambak streamlines the loan approval process, reducing turnaround time for homebuyers.
Major Partnerships: Ambak has already assisted 15,000 customers and is working with the Delhi Development Authority (DDA) to support an additional 35,000 homebuyers.
B) India’s Financial Landscape: Key Shifts
Massive Distribution Network: Airtel Payments Bank now operates 500,000 banking points, serving one in every five villages in India.
Digital Banking Solutions: Services include savings accounts, bill payments, UPI transactions, and government scheme facilitation.
Security Innovations: The bank uses AI-powered Face Match authentication, blockchain for secure transactions, and GenAI tools to enhance fraud detection and operational efficiency.
Rise in Digital Transactions: UPI now dominates 83% of India’s digital payments, growing at a 74% CAGR over the past five years.
Credit Cards Outpace Debit Cards: The number of credit cards doubled from 5.53 crore in 2019 to 10.80 crore in 2024, while debit cards saw marginal growth from 80.53 crore to 99.09 crore.
RBI's Role: The central bank mandated EMV Chip and PIN technology for cards, boosting secure digital transactions.
X Money Account Launch: X, formerly Twitter, partners with Visa to enable peer-to-peer payments, bank transfers, and instant wallet top-ups.
Social Media + Finance Integration: The feature will allow content creators to receive and store payments directly on X, challenging traditional banks and payment platforms.
领英推荐
Musk’s Fintech Vision: This move revisits Musk’s early ventures in X.com and PayPal, aligning with his broader goal to create an "Everything App."
C) Business Developments: Key Financial Sector Moves
Unified Financial Management: FINVASIA , in partnership with YES Bank, has launched Jumpp, an AI-driven super app integrating banking, payments, savings, investing, and lending into a single platform.
Target Market: Aiming to onboard 1 million users by 2026, the app focuses on Tier 2 and Tier 3 cities, offering multilingual AI-driven financial services in English and Hindi.
Financial Inclusion Focus: Jumpp allows users to open YES Bank accounts instantly, manage all financial accounts via the Account Aggregator framework, and receive AI-powered financial recommendations.
Industry Insights: “We are not just simplifying financial management; we’re empowering individuals to take control of their financial futures,” said Sarvjeet Singh Virk, Co-Founder, Finvasia.
Pioneering the E-Rupee: CRED , backed by Tiger Global and Peak XV, is the first fintech to provide access to India's Central Bank Digital Currency (CBDC), also known as the e-rupee.
Pilot Expansion: The Reserve Bank of India (RBI) initially restricted CBDC access to banks but extended eligibility to fintech payment firms in April 2024.
Future of Digital Currency: Other major players like Google Pay, PhonePe, Amazon Pay, and MobiKwik are also seeking to participate in the CBDC pilot program.
D) Regulatory Updates: Key RBI Decisions
Standardized Regulations: The RBI repealed existing Housing Finance Company (HFC) guidelines, bringing them in line with Non-Banking Financial Companies (NBFCs) for private placements of non-convertible debentures (NCDs).
Key Changes:
Increased Penalty Cap: RBI can now impose a penalty of ?10 lakh or twice the amount involved (whichever is higher) for violations under the Payment and Settlement Systems (PSS) Act, 2007. Previously, the maximum penalty was ?5 lakh.
Daily Fines for Ongoing Violations: A further ?25,000 per day can be levied until compliance is achieved.
Stronger Oversight: Payment service providers must comply with stricter regulations to avoid financial and operational penalties.
Penalty for Improper Loan Charges: Equitas Small Finance Bank was fined for:
Supervisory Action: The fine was imposed following RBI’s 2023 inspection, which found compliance lapses in agricultural and retail lending practices.
Unauthorized Account Modifications: The RBI fined India Post Payments Bank for upgrading customer accounts and levying charges without consent.
Compliance Issues: RBI’s supervisory review found that the bank failed to properly notify and secure approval before implementing account modifications and fee deductions.
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 next week!
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!
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4 周Sounds like a solid update for anyone in the fintech space in India. Keeping up with regulatory changes is never easy, but it’s key for growth. What’s the biggest shift you’ve seen recently that fintech companies should be paying attention to, Akhil?
keep up the great work Akhil Mishra