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RBI Slaps INR 4 Cr Penalties On LiquiLoans, LenDen
Inc42
·
11m ago
Medial
LiquiLoans and LenDen Club have both been fined by the Reserve Bank of India for failing to disclose personal details of borrowers to lenders and disbursing loans without approval. LiquiLoans was fined INR 1.92 Cr, while LenDen Club faced a penalty of INR 1.99 Cr. These fines come after the RBI's recent crackdown on violations and emphasis on compliance for NBFC-P2P lending platforms.
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P2P lending slows as RBI move clouds future of key players
Economic Times
·
4m ago
Medial
The peer-to-peer lending industry in India is experiencing a major slowdown after the Reserve Bank of India (RBI) imposed stringent regulatory guidelines. The sector's assets under management (AUM) have dwindled significantly, leading major players like LenDen Club and Liquiloans to halt new loan activities. The crackdown, including fines for regulatory violations, has pushed platforms to reassess their business models, causing uncertainty and a lack of new business. Compliance challenges and bad loan issues further complicate the industry's revival efforts.
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LiquiLoans revenue surges 3.4X to Rs 696 Cr in FY24, remains profitable
Entrackr
·
5m ago
Medial
LiquiLoans revenue surges 3.4X to Rs 696 Cr in FY24, remains profitable While the Reserve Bank of India (RBI) tightens regulations around the peer-to-peer (P2P) lending space, with the impact expected to be seen in FY25 and FY26, the sector’s poster child, LiquiLoans, has experienced 3.4x growth in the fiscal year ending March 2024. LiquiLoans’ revenue from operations jumped to Rs 695.63 crore in the last fiscal year (FY24) from Rs 203.43 crore in FY23, its financial statements sourced from the Registrar of Companies (RoC) show. LiquiLoans operates as a peer-to-peer lending platform, providing personal loans, consumer loans, and deposit financing. The platform emphasizes high diversification, capping portfolio exposure per borrower at 0.5%. During the last fiscal year, the sale of these services was the company’s sole source of revenue. LiquiLoans made additional Rs 10 crore from interest income which pushed its total income to Rs 706 crore in FY24. On the expense front, service fee expenses accounted for the largest share, surging 4X to Rs 578.57 crore in FY24, compared to Rs 140 crore in FY23. Commission payouts increased by 88% to Rs 64.72 crore, while employee benefit expenses rose 2.5X to Rs 40.80 crore. Overall, LiquiLoans' total expenses jumped 3.3X, reaching Rs 704.59 crore in FY24, up from Rs 212.94 crore in FY23. The steep rise in expenses led to an 88% drop in profits for LiquiLoans, declining to Rs 71 lakh in FY24 from Rs 5.70 crore in FY23. The company's ROCE and EBITDA margin stood at 1.11% and 0.35%, respectively. On a unit basis, LiquiLoans spent Rs 1.01 to generate every rupee of operating revenue in the last fiscal year. The Mumbai-based company reported cash and bank balances of Rs 33 lakh and current assets worth Rs 283 crore in FY24. According to TheKredible, Liquiloans has raised $15 million to date, with Matrix Partners and CRED serving as its lead investors. LiquiLoans has built a strong reputation in the business, and market feedback indicates some of the lowest non-performing loans in its portfolio as well. As the backend for some leading players in the business, the firm has also focused on the higher credit score side of the market, further reducing risk. What that has also meant is that margins can be narrower if returns are safer. Thus, margin expansion will need to look at the cost side harder. With the regulator keen to weed out short-term players, LiquiLoans seems well placed for a strong run in the vanilla personal loans business, besides future opportunities with other products as it builds its own database of high-quality borrowers.
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Ashneer Grover writes to RBI seeking probe into BharatPe’s shareholding, licence applications
Economic Times
·
1y ago
Medial
Ashneer Grover, former MD of BharatPe, has written to the Reserve Bank of India (RBI), requesting an investigation into the shareholding of the Peak XV-backed company. Grover alleges that BharatPe knowingly "defrauded" the RBI by bringing back Bhavik Koladiya, previously convicted of wire fraud in the US, to the company's cap table after securing licenses. Grover questions if Koladiya's presence during the license application would have affected BharatPe's eligibility for a stake in Unity Small Finance Bank or acquiring Liquiloans. He demands revocation of licenses, banning of directors, blacklisting of associated venture firms, and monetary penalties if found guilty.
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RBI Slaps INR 87.5 Lakh Fine On Ola Financial For Flouting Norms
Inc42
·
1y ago
Medial
The fintech arm of Ola, a ride-hailing company, has been fined INR 33.40 Lakh for not adhering to know your customer (KYC) norms. Additionally, a penalty of INR 54.15 Lakh was imposed for violating master directions on prepaid payment instruments (PPIs). The Reserve Bank of India (RBI) levied these fines under the Payment and Settlement Systems Act, 2007.
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RBI Slaps INR 5.39 Crore Penalty on Paytm Payments Bank for KYC Non-Compliance and Cybersecurity Violations
Business Bytes
·
1y ago
Medial
The Reserve Bank of India (RBI) has imposed a penalty of INR 5.39 crore on Paytm Payments Bank for non-compliance with KYC norms and violations related to cybersecurity. This action highlights the RBI's commitment to maintaining the integrity and security of the Indian financial system. Paytm Payments Bank will need to undertake remediation efforts to address the issues raised by the RBI, ensuring compliance and enhancing cybersecurity measures. This penalty serves as a reminder to all financial institutions to uphold KYC norms and cybersecurity standards rigorously. The impact on customer trust will depend on the effectiveness of corrective actions taken.
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Paytm Shares Continue To Bleed, Tanks Over 4% On Friday
Inc42
·
1y ago
Medial
Paytm shares dropped over 4% on Friday, reaching INR 339.00 per share. At 11:00 AM on Friday, the shares were trading at INR 340.15, down from the previous close at INR 356.20. This is significant as it is Paytm's first quarterly result following the Reserve Bank of India's (RBI) imposed restrictions on Paytm Payments Bank.
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RBI issues monetary fines to Hewlett Packard, and THESE 2 companies for KYC non-compliance | Mint
Livemint
·
10m ago
Medial
The Reserve Bank of India (RBI) has imposed monetary penalties on three non-banking financial companies (NBFCs) for various regulatory lapses and non-compliance with RBI directives. Hewlett Packard Financial Services (India) Private Limited, SMFG India Credit Company Limited, and Muthoot Vehicle & Asset Finance Limited were the companies penalized. The penalties were issued between September 3 and September 11, 2024. The penalties were levied for non-compliance with Know Your Customer guidelines, Information Technology and cybersecurity guidelines, and liquidity risk management framework, among others. The penalties ranged from ₹7,90,000 to ₹23,10,000.
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P2P startups look to overhaul biz, processes amidst RBI crackdown
Economic Times
·
9m ago
Medial
Peer-to-peer lending startups in India are making changes to their operations in order to comply with regulations from the Reserve Bank of India (RBI). Fintech platform Mobikwik is now processing all withdrawals on the 12th of each month and crediting them to investors' bank accounts within three working days. Other platforms, such as BharatPe and Cred, have halted their P2P lending products, while Faircent has shifted towards offline channels and working with investment advisors. The RBI has taken action against companies that violated P2P lending rules, with fines of around Rs 1.9 crore ($258,250) issued to Liquiloans and Lendenclub.
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MCA Slaps Fine On Nithin Kamath, Zerodha AMC
Inc42
·
1y ago
Medial
A fine of INR 5 Lakh has been imposed on a company and its director for not appointing a Chief Financial Officer (CFO). The founder of the company has been charged a penalty of INR 4.08 Lakh. Zerodha Asset Management plans to contest the order. The violation of the Companies Act, 2013 occurred when the company failed to appoint a CFO for 459 days between December 20, 2021, and March 23, 2023.
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Ashneer Grover writes to RBI for probe into BharatPe’s shareholding: Report
Business Today
·
1y ago
Medial
Ashneer Grover, former director of BharatPe, has asked the Reserve Bank of India (RBI) to investigate the shareholding of the company. Grover alleges that BharatPe fraudulently brought back Bhavik Koladiya, a convicted fraudster, to the company's cap table after obtaining licenses from the RBI. Grover questions whether BharatPe would have been approved for a stake in Unity Small Finance Bank or allowed to acquire Liquiloans had Koladiya been part of the company's cap table during the license application. BharatPe has filed lawsuits and criminal complaints against Grover and his family.
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