EnFin: Your Fresh Source To Fintech Updates (August Edition)

EnFin is a weekly roundup of the latest news, updates, and changes in the fintech world made for those who want to stay updated on the go. It covers everything from new developments and announcements to important updates and policy changes in the industry.

This is our monthly edition, bringing together all the key highlights from the past few weeks in one place.

NPCI Expands UPI‑PayNow Network with 13 More Banks

NPCI has onboarded 13 more Indian banks, including HDFC Bank, Kotak Mahindra Bank, and Bank of Baroda, to the UPI‑PayNow linkage with Singapore, raising the total to 19. This expansion enables faster, low-cost cross-border transfers and enhances real-time remittance access for individuals and businesses.

UPI Frauds Surge in India: Here's How to Stay Safe

India reported 13.42 lakh UPI fraud cases in FY 2023–24, with losses crossing ₹1,000 crore, nearly double the previous year. Scams include phishing links, fake QR codes, screen-sharing, and fraudulent apps. Users should avoid sharing OTPs or UPI PINs, verify requests, and use only trusted apps.

India Tops Fast Payments with 18 Billion Monthly UPI Transactions

India now processes over 18 billion UPI transactions monthly, making it the world’s largest real‑time payment system, according to an IMF report. UPI connects roughly 675 banks, serves 491 million users and 65 million merchants, and supports nearly 50% of global instant payments, boosting digital inclusion and fintech growth.

RBI Plans Stricter Digital Banking Norms, Ban on Third‑Party Listings

RBI’s draft Digital Banking Channels Authorisation Directions propose banning display of third‑party products (even from bank affiliates) on digital platforms unless explicitly permitted. Banks must secure explicit customer consent, cannot force adoption of digital channels for other services, and require prior RBI approval to launch transactional platforms.

UPI Users Can Now Withdraw Cash via Credit Line

Starting August 2025, UPI users can access approved credit lines (e.g. loans against property, gold, FDs, shares) not only for merchant payments but also for cash withdrawals, P2P transfers, and P2PM transactions. NPCI mandates implementation by banks and UPI apps by August 31, 2025, enhancing credit-backed digital financial access.

With Slowing Customer Growth, Fintechs Focus on Deeper Impact: Report

A recent study by IBS Intelligence shows fintechs are pivoting from user‑volume to deeper engagement, focusing on customer value, retention, and profitability, as regulatory clarity improves (62% believe environment adequate), especially in APAC and MENA markets.

RBI’s Financial Inclusion Index Rises in FY25

RBI’s Financial Inclusion Index rose to 67 in March 2025 from 64.2 a year earlier a 4.3% gain driven by improvements in access, usage, and quality of financial services, supported by financial literacy and outreach initiatives.

Digital Transactions Surge Over 80x Since 2014, Says Govt

India’s digital payments volume soared from ~220 crore transactions in FY 2013–14 to 14,726 crore in FY 2023–24 a more than 80-fold rise underscoring the success of Digital India programs, widespread inclusion, and rapid shift to cashless systems.

RBI DG Flags Lack of Empathy Behind Rising Customer Complaints

RBI Deputy Governor Swaminathan noted customer complaints rose to 2.96 lakh in FY25, mainly driven by digital channel issues. He stressed that the problem isn’t just faulty services but a lack of empathy, citing impersonal systems and helpline loops undermining trust.

India Leads the World in Fast Payments: IMF

India now leads the world in real‑time digital payments, driven by the Unified Payments Interface (UPI), according to an International Monetary Fund fintech note. Since its 2016 launch, UPI has scaled rapidly, processing over 18 billion transactions per month, while use of cash substitutes like debit and credit cards has declined.

RBI May Allow 26% Foreign Stake in Indian Banks

RBI Governor Sanjay Malhotra has signalled a possible policy change to permit foreign banks to hold up to 26% stake in Indian banks, up from the current 15% cap on strategic investors, under existing FDI norms (foreign investors can hold up to 74%). Voting rights would also remain capped at 26% as per law.

UIDAI Introduces Hassle‑Free Offline Aadhaar KYC

UIDAI now enables Aadhaar-based offline KYC without sharing your Aadhaar number, OTP, or biometric data. Instead, users generate a reference ID and a digitally signed XML or QR/PDF file that contains selected data (name, address, DOB, gender, hashed mobile/email). This enhances privacy, simplifies onboarding, and promotes broader fintech and banking adoption.

RBI Hints at More Rate Cuts as Inflation Eases

RBI Governor Sanjay Malhotra has indicated room for further interest rate cuts this year following a sharp decline in inflation and steady economic growth, with the Monetary Policy Committee currently in a neutral stance that allows flexibility up, down or pause. June retail inflation dropped to a six‑year low of 2.10%, well below the RBI’s 3.7% projection, prompting expectations for a possible 25 bps cut later in the year.

UPI Surpasses Visa in Daily Transactions: Amitabh Kant

India’s Unified Payments Interface (UPI) has overtaken Visa to become the world’s largest real-time payment system, processing over 650 million daily transactions, surpassing Visa’s ~639 million. Amitabh Kant called it a “phenomenal” milestone achieved in just nine years, showcasing India’s digital payments leadership.

66% of Indian Fintech Loans Targeted Young Customers

An RBI report shows that 66% of fintech loans went to borrowers under 35, with the 25–30 age group dominating. Based on data from over 2,000 digital lenders, most loans were small-ticket, short-term, and disbursed via mobile apps. This reflects growing demand among young consumers for quick, app-based credit, often for consumption needs, supported by alternative credit scoring.

Fintech NBFCs Now Power 75% of Personal Loans

In FY25, fintech NBFCs disbursed ₹1.05 lakh crore in personal loans across 11 crore accounts 75% of total disbursals, up from 25% in FY19. The surge is driven by small-ticket loans, mostly under ₹5,000, delivered via digital platforms. These loans cater to everyday or emergency needs, with fast approvals and alternative underwriting reaching younger, underserved borrowers.

RBI Bans Pre‑Payment Charges on Biz Loans

Effective January 1, 2026, the RBI has barred banks and NBFCs from charging pre-payment penalties on floating-rate loans taken by individuals and MSEs for business purposes. The rule also applies to personal loans. For smaller lenders, it covers loans up to ₹50 lakh. The move ends lock-ins and fees, addressing borrower grievances and standardizing lending practices.

Fintech Fuels EV Growth in Tier‑2 India

Fintechs are driving access to electric vehicles in Tier 2 India through alternative credit scoring and embedded finance. By analyzing UPI activity, bill payments, and digital behavior, lenders can approve loans for gig workers and small business owners without formal documentation. Embedded finance bundles loans, insurance, and services into one journey, accelerating EV adoption and supporting India’s green mobility goals.

Energy’s UPI Moment: India Energy Stack Launches

The Ministry of Power has launched the India Energy Stack, a digital infrastructure inspired by Aadhaar and UPI, to modernize the power sector. Led by a task force under Nandan Nilekani, it enables real-time data exchange, supports peer-to-peer energy trading, and smart services via the Utility Intelligence Platform. Pilot programs will start in Delhi and Mumbai.

AI Empowers SMB Procurement Revolution

AI is helping small and medium businesses transform procurement by automating routine tasks and offering smart insights. It streamlines processes like invoice approvals, supplier onboarding, and purchase orders, freeing up time for strategic work. AI also provides real-time data analysis to guide supplier choices and spending decisions, allowing SMBs to manage costs better and compete more effectively.

RBI Panel Backs 4% CPI Inflation Goal

A Reserve Bank of India internal committee has recommended continuing with the current 4% inflation target, maintaining the existing 2%–6% tolerance band and using the Consumer Price Index (CPI) as the key measure. The panel rejected calls to exclude food inflation, stressing that it makes up nearly half of household expenses and should remain part of the framework. The recommendation supports policy continuity and is expected to guide the post-2026 monetary strategy.

India Tops Global Digital Payments, IMF Credits UPI

India has emerged as the global leader in fast digital payments, according to a recent IMF Fintech Note. The Unified Payments Interface (UPI) now facilitates over 18 billion transactions every month, underscoring its widespread adoption. Its real-time, interoperable framework has made payments seamless across banks and apps, significantly reducing reliance on cash. As UPI use grows, debit and credit card transactions have declined, marking a major shift in how Indians transact daily.

Fintechs Urged to Boost Offline Payments for Financial Inclusion

The Department of Financial Services has urged fintechs to build offline payment solutions for areas with limited connectivity. Emphasizing that true inclusion goes beyond internet-based services, the call highlights the need for tech that works in low-network zones. Strengthening offline infrastructure can bridge the urban-rural gap and expand digital finance access to underserved communities.

NAFCUB Asks RBI to Draft Guidelines for New UCBs

The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) has urged the Reserve Bank of India to issue clear guidelines for establishing new Urban Cooperative Banks (UCBs). It emphasized that expanding the cooperative banking network is essential to enhance financial access, especially in underserved areas. NAFCUB believes new UCBs can play a crucial role in meeting local credit demands, promoting inclusive growth, and strengthening grassroots financial services.

NPCI Shares 5 Essential Tips to Enhance Digital Payment Security

To combat rising digital payment fraud, NPCI has shared five safety tips: verify UPI handles before payments, avoid scanning unknown QR codes, never share PINs or OTPs, use secure internet connections, and report suspicious activity immediately. The advisory aims to boost user awareness and reduce cyber risks across India’s growing digital payment ecosystem.

Feedzai Launches ScamAlert to Tackle Rising Financial Fraud

Feedzai has introduced ScamAlert, an AI-powered fraud detection tool aimed at combating the surge in financial scams. Designed to operate in real-time, ScamAlert analyzes customer behavior and transaction patterns to identify suspicious activity before fraud occurs. By integrating this tool into their systems, banks can take a more proactive approach to safeguarding customers, improving fraud prevention efforts, and enhancing trust in digital banking channels.

NPCI Boosts RuPay Credit Card Adoption with Incentives

The National Payments Corporation of India (NPCI) is stepping up efforts to expand the adoption of RuPay credit cards by offering financial incentives to banks. This strategic push is intended to help RuPay compete more effectively with global players like Visa and Mastercard. By encouraging banks to issue and promote RuPay cards, NPCI aims to strengthen India’s domestic payment infrastructure, enhance digital transaction volumes, and reduce reliance on international networks.

RBI Releases Draft Guidelines on OTC Derivatives Novation

The Reserve Bank of India has released draft directions on the novation of over-the-counter (OTC) derivatives, aimed at strengthening the regulatory framework for these transactions. Novation involves transferring an existing contract from one party to another, and the guidelines set out clear procedures for doing so. The move is intended to reduce counterparty risk, improve market transparency, and enhance overall risk management practices in the OTC derivatives market.

UPI Goes Global: NPCI Expands Reach

NPCI International is actively working to extend Unified Payments Interface (UPI) acceptance across global markets. The initiative aims to make real-time, seamless digital payments available to Indian travelers and businesses abroad. By partnering with foreign payment systems and institutions, NPCI seeks to simplify cross-border transactions, reduce dependency on cash and cards, and establish UPI as a globally recognized digital payment solution.

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