Neobank Jupiter secures NBFC licence: Jupiter, a neobanking startup, has received a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI), allowing it to extend loans using its own resources. According to Jitendra Gupta, the founder of Amica Financial Technologies Ltd., which operates Jupiter, the company will appoint a professional chief executive officer to manage the NBFC operations.
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Significance of the NBFC licence:
Jupiter has been increasing its lending activities through partnerships with NBFCs, thus this is a big milestone. Jupiter will have more control over its lending activities with the NBFC licence and will be able to extend credit directly from its own books, allowing better flexibility and control over the lending process.
About Jupiter: A Neobank:
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.
About NBFCs:
NBFCs, or non-banking financial companies, are financial institutions that provide a range of financial services but do not hold a banking license. They are subject to various regulations and limits and are governed by the Reserve Bank of India (RBI), but they are not permitted to accept demand deposits or issue cheques.