BNPL update

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On 7th Dec, BNPL poster child ZESTMoney closed down. This marked an end to an end in fintech experiment lasting 7 years. The regulatory arbitrage which ended with the RBI's digital lending guidelines 2022. The regulatory intervention coincided with similar regulatory oversight initiated by regulators across the world. I had delved in depth on several aspects of BNPL in my paper (BNPL). The regulatory stance has been accomodative. The approval received by Slice for merger with Guwahati-based North East Small Finance Bank (NESFB) is a landmark in the fintech / BNPL segment. Slice had already received an NBFC lisence and wants to integrate with a small finance Bank.

Also see my working paper on BNPL