The Reserve Bank of India (RBI) has granted approval to One MobiKwik Systems Limited to operate as a Non-Banking Financial Company (NBFC). This decision enables the fintech major to set up a wholly owned subsidiary, MobiKwik Financial Services Private Limited, as its dedicated lending division. The commencement of operations is now contingent upon the company receiving the official Certificate of Registration (CoR) from the central bank.
RBI Approves MobiKwik’s NBFC Application
The central bank’s approval for the NBFC license was processed in less than four months, highlighting an efficient regulatory review of the company’s application. While the initial approval has been granted, the newly formed subsidiary, MobiKwik Financial Services Private Limited (MFSPL), must now secure a Certificate of Registration (CoR) before it can begin full-scale lending operations. This registration is a mandatory requirement under the Reserve Bank of India Act, 1934, for any entity intending to carry out financial services as its principal business.
The move comes as part of the company’s broader strategy to expand its footprint in the regulated financial services space. By establishing a dedicated lending arm, the group aims to streamline its credit offerings and comply with the Digital Lending Guidelines introduced by the RBI in 2022. These guidelines mandate greater transparency and stricter data protection norms for fintech companies operating as Lending Service Providers (LSPs) or regulated entities.
Strategic Shift Towards In-house Lending
Securing an NBFC license marks a pivotal shift in the company’s business model. Previously, the fintech firm operated as a facilitator for credit, partnering with third-party banks and financial institutions to provide loans. With the new license, the subsidiary can directly originate and underwrite loans, allowing the parent company to capture higher lending margins and exercise greater control over the credit assessment process.
The in-house lending capability is expected to accelerate the launch of new credit products tailored for both consumers and Micro, Small, and Medium Enterprises (MSMEs). By leveraging its vast user data and data science capabilities, the company can refine its risk management models. This transition into a full-stack financial services platform is aimed at deepening financial inclusion across “Bharat,” targeting underserved segments that may lack access to traditional credit channels.
Regulatory Framework for NBFCs in India
A Non-Banking Financial Company (NBFC) is an institution registered under the Companies Act, 2013, and is engaged in the business of loans, advances, or the acquisition of shares and securities. Unlike traditional banks, NBFCs cannot accept demand deposits (like savings or current accounts) and do not form part of the payment and settlement system. They are regulated by the Reserve Bank of India under the provisions of Chapter III-B of the Reserve Bank of India Act, 1934.
To operate as an NBFC, a company must satisfy the Principal Business criteria, often referred to as the 50-50 test. This requires that more than 50% of the company’s total assets be financial assets and more than 50% of its gross income be derived from those assets. Furthermore, most categories of NBFCs are required to maintain a minimum Net Owned Fund (NOF) of ₹10 crore to ensure financial stability and protect consumer interests.
About One MobiKwik Systems Limited
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is headquartered in Gurugram, Haryana. The company originally started as a mobile recharge platform and a digital wallet provider. Over nearly two decades, it has evolved into a comprehensive financial services ecosystem offering digital payments, buy-now-pay-later (BNPL) facilities, and wealth management services.
In December 2024, the company reached a major corporate milestone by completing its Initial Public Offering (IPO). The transition from a payments-centric model to a full-stack financial services player reflects the growing maturity of the Indian fintech landscape. With the acquisition of an NBFC license, the company is positioned to directly address the credit needs of millions of users, further solidifying its role in India’s digital economy.
Key Takeaways
- The Reserve Bank of India (RBI) has approved One MobiKwik Systems Limited’s application to operate as a Non-Banking Financial Company (NBFC).
- The approval enables the group to conduct in-house lending through its wholly owned subsidiary, MobiKwik Financial Services Private Limited.
- Actual lending operations will commence only after the entity receives the final Certificate of Registration (CoR) from the central bank.
- NBFCs in India are primarily regulated under Chapter III-B of the Reserve Bank of India Act, 1934.
- To qualify as an NBFC, an entity must meet the Principal Business criteria, where financial assets and income both exceed 50% of the totals.
- One MobiKwik Systems Limited was founded in 2009 and is headquartered in Gurugram, Haryana.
