Fintechs step up credit checks; unicorns embrace cashless consolidation

Last month, RBI dusted off its rulebook to remind everyone that credit lines cannot be used to enable digital wallets, i.e. prepaid payment instruments (PPIs). That felt like a stab in the heart to fintechs, which had built payment solutions for consumers this way. 

But after some quick reflection, they are setting things in order. This involves fine-tuning underwriting and bureau reporting processes. 

Crossing a line: Fintech apps, industry insiders said, were earlier issuing credit lines to their wallet users. They reported them as open credit lines or overdrafts when these were loans for all intents and purposes.