Central bank crackdown throws digital lenders into a panic in India

BENGALURU – The Indian central bank’s ban in late August on easy credit given by fintech firms has led to a crash in an industry that had raised US$700 million (S$976 million) in the past year and registered millions of users.

Digital payment firms such as LazyPay, Slice, Uni Cards, Ola Postpaid and MobiKwik had ventured into digital lending, tying up with banks or non-banking financial institutions to offer credit against their prepaid cards or digital wallets.