fintech startup legal requirements
2 years ago
what are the legal requirements to start a neobank with the partnership of a traditional bank like hdfc bank or icici bank??
Are there any licensing requirements to start this business??
A.Dear Sir,
There are 10 neo banks in India currently, and a couple of more are in the process of entering the market. ICICI Bank took the lead in the segment and partnered with three neo banks: Free, Instant Pay, and Yelo. The profit margins of neo banks are slim, and the regulators are encouraging more entrants and competition.
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There are 10 neo banks in India currently, and a couple of more are in the process of entering the market. ICICI Bank took the lead in the segment and partnered with three neo banks: Free, Instant Pay, and Yelo. The profit margins of neo banks are slim, and the regulators are encouraging more entrants and competition.
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A.There are two types of Neo Banks -One that require license and one that does not require license. If you need to provide deposit services to customers (like savings accounts) then you need the license from RBI else you can start without any license from RBI and just with a tie-up from any of the running banks from India.
Yes as legal business entity you need to get yourself incorporated as a business entity and then have a tie-up with a bank.
I am sure you would be knowing all about a NEO-BANK that its completely digital bank without any physical presence providing all banking services through mobile platform.
Yes as legal business entity you need to get yourself incorporated as a business entity and then have a tie-up with a bank.
I am sure you would be knowing all about a NEO-BANK that its completely digital bank without any physical presence providing all banking services through mobile platform.
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A.Hi,
There are various compliance related issues which needs to be dealt with. Contact with an practicing advocate with the relevant details about the nature of your business and the proposed model, he will advise you further.
If you like my answer, please rate me.
There are various compliance related issues which needs to be dealt with. Contact with an practicing advocate with the relevant details about the nature of your business and the proposed model, he will advise you further.
If you like my answer, please rate me.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
There are certain compliances that needs to be followed under the companies Act and other ancillary legislations. Please consult with an practicing advocate to discuss further with the relevant details.
If you like my answer, please rate me.
There are certain compliances that needs to be followed under the companies Act and other ancillary legislations. Please consult with an practicing advocate to discuss further with the relevant details.
If you like my answer, please rate me.
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