ZestMoney’s rapid downfall from a USD 440 million valuation within a year is spotlighting weak loan recovery across fintech lenders, especially those built on unsecured credit. The shakeout also raises tough questions for BNPL platforms that scaled quickly by extending loans without strong repayment performance, suggesting tighter scrutiny and funding headwinds ahead for the sector.
The Reserve Bank of India is tightening customer protection through new rules aimed at stopping mis-selling of financial products and curbing coercive loan recovery practices. The RBI is also proposing a compensation framework for small value fraudulent digital transactions, seeking to make the financial system safer and more accountable for consumers nationwide.
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