₹1.92 crore on NDX P2P Pvt Ltd, also referred to as LiquiLoans, for non-compliance with some provisions of the P2P and digital lending norms. On the same day, the regulator also slapped a fine of ₹1.99 crore on Innofin Solutions Pvt Ltd, also known as LenDen Club, for the same reasons. Experts said that while the digital lending opportunity is huge, it has of late faced regulatory hurdles, leading to slowdown.
According to analysts at Emkay Global Financial Services Ltd, rising systemic delinquencies in the unsecured space, over-leveraging and regulatory friction could stifle growth. “Thus, the regulator has called for creating a fintech SRO to regulate players and set an acceptable business practice," they said in a report on 30 August. Saxena said FACE had presented a roadmap to the regulator, detailing its plans once it is recognised as a self-regulator.
The first task would be to involve all kinds of fintechs in the SRO, which she said has already started expanding membership to fintechs beyond credit. It also plans to have dedicated outreach efforts to engage with smaller and newer fintechs, and not just the established ones. “Equally important is building solid institutional mechanisms around governance for inclusivity and fairness.
For example, representation of different types of fintechs on the board, committees and working groups, and task forces," said Saxena, adding that to execute the SRO mandate, the association will have an enforcement committee to investigate misconduct and take action. “Another critical dimension is stepping up talent and technology within FACE to undertake the responsibility given to us. This is critical to ensuring that we are able to collaborate with the industry on highly specialized
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