India’s MobiKwik gets central bank nod for non-banking financial company licence

BENGALURU, April 27 (Reuters) – Indian fintech firm One MobiKwik Systems said on Monday that its group has received approval from the Reserve Bank of India for a non-banking financial company (NBFC) licence.

• The licence will allow MobiKwik to launch a lending arm, Mobikwik Financial Services, expanding its regulated credit offering.

• Shares of the company rose 14% after the annoucement.

• One MobiKwik Systems operates a digital wallet and has expanded into the distribution of financial products, including credit and investments.

• The NBFC licence will also enable MobiKwik to roll out lending products faster and improve margins by bringing credit operations in-house, the company said.

• The unit will offer secured and unsecured loans to consumers and small businesses, with a focus on underserved markets.

• The company said non-bank lending operations will begin after it receives a certificate of registration from the central bank on fulfilment of certain conditions.

(Reporting by Nishit Navin; Editing by Sherry Jacob-Phillips)