New RBI norms mixed bag for fintechs: Experts
These changes aim to improve transparency, governance; However, they also present fresh challenges, opportunities for fintechs working at intersection of technology, credit access and risk management
image for illustrative purpose
Mumbai: Reserve Bank of India’s latest directives on small business lending, gold-backed credit, and co-lending norms are set to reshape the digital lending ecosystem. While these changes aim to improve transparency and governance, they also present fresh challenges and opportunities for fintechs working at the intersection of technology, credit access, and risk management.
Talking to Bizz Buzz, Kushal Rastogi, Founder & CEO, Knight FinTech, says: “The RBI’s directives mark a transformational moment for India’s lending ecosystem.”
By expanding gold backed credit and easing small business lending norms, the regulator is opening the door for millions of underserved MSMEs to access formal credit. At Knight FinTech, we see this as a catalyst for deeper collaboration where banks, NBFCs, and fintech’s can co-lend with greater transparency and efficiency, offering faster and cheaper loans through blended rate structures, he said.
Our platforms already enable institutions to underwrite smarter through AI-driven credit intelligence, real-time portfolio monitoring, and early warning systems. As FLDG exposure continues to expand, this regulatory clarity will accelerate adoption. The result will not just be more credit, but better quality credit sustainable, data-driven, and at scale. With this foundation, we believe confidence among both domestic and global capital providers will grow, paving the way for India’s digital lending sector to enter its next phase of maturity, he added.
Saurabh Puri, Chief Business Officer, Zaggle, adds: “At Zaggle, we view the RBI’s recent directives as a positive step towards a more structured and inclusive credit ecosystem. Clearer co-lending norms and the expansion of gold-backed lending for MSMEs create new opportunities for FinTechs to partner with banks more effectively, leveraging technology to assess and manage risk.” By moving away from mechanisms like Default Loss Guarantees, the regulator is encouraging more sustainable, transparent credit flows, he added. For digital lenders and our enterprise customers, this clarity not only enables smarter, data-driven lending decisions, but also strengthens overall confidence in the system, paving the way for long-term growth.
