Ramanuj Dad

If you've been having trouble paying your Zomato bills through Simpl lately, here's what happened: the RBI has ordered Simpl to stop all payment operations immediately. Unlike most major BNPL players who have NBFC licenses (either their own or partnering with one), Simpl was operating without one. Simpl positioned itself as a payment utility. A digital "khata" or dues ledger—rather than a traditional lender. RBI has simply interpreted it as if Simpl is running a payment systems with clearing and settlement functions then it should do so with a proper Certificate of Authorisation under the Payment and Settlement Systems Act. However, this time it wasn't a warning or a request to get licensed—it was an order to halt operations with immediate effect. This move reflects the RBI's broader push to eliminate regulatory grey areas in fintech. With the new Payment Aggregator Master Directions 2025, the message is clear: whether you're lending money or processing payments, proper licensing is non-negotiable. The regulatory landscape is tightening indeed, and compliance needs to be the foremost priority. #fintech #RBI

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Funding is Just Fuel. Not the Destination. At Finlabs, we often joke that maybe we missed the startup syllabus. Because apparently, it says: Burn money faster than you earn it Celebrate valuations as if they pay the bills Treat funding rounds like Oscar ceremonies Well, we chose a different chapter. 1. We stayed afloat without external funding. 2.We obsessed over customer problems, not investor decks. 3. We invested in after-sales service instead of after-dinner speeches. 4. And yes, we happily skipped the valuation game that tempts many into chasing quick bucks. As Jeff Bezos once said: “Your brand is what other people say about you when you’re not in the room.” We figured customers won’t care if we raised $50M but they will care if their problem isn’t solved. Steve Jobs put it bluntly: “Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.” That’s been our compass. Not the VC calendar. And Warren Buffett reminded us: “Games are won by players who focus on the playing field not by those whose eyes are glued to the scoreboard.” For us, the playing field is the customer. The scoreboard (read: valuation) will take care of itself if we play well. Sure, it means fewer headlines. No “Series A, B, C, D” press releases. No glamour shots with VCs. But it also means freedom. Freedom to serve customers, not cap tables. Because funding, at best, is like petrol it gets you moving. But no one buys a car just to admire the fuel tank. At Finlabs, we’d rather build a business that lasts than play a valuation game that eventually bursts. So the question is: Are you building for your customers or just for the next press release? As for us, we’ll keep serving customers while others keep serving appetizers at funding parties.

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NRIs’ remittances to India have grown at 10.3% CAGR in US-dollar terms since 2001. Only one other item, software services exports, has outpaced this, at ~15% CAGR over the same period. How big are remittances? They were about $125 bn in FY25, larger than India’s biggest merchandise export category, engineering goods (~$117 bn). In effect, India’s largest “export” is its people: they earn dollars abroad and remit them home. Growth in remittances from the Gulf has softened; oil-linked wages aren’t compounding at 10%+. That implies roughly one-third of the remittance basket is unlikely to sustain 10% growth. To keep overall remittances growing at historical rates, flows from services-driven hubs (the US, UK, Singapore, etc.) would have to rise at 12%+ in USD terms, a tall ask requiring comparable NRI income growth. Therefore, one of the largest and most supportive components of India’s balance of payments (BoP), remittances, may have reached a cyclical peak. If this coincides with a softening in services exports, the adjustment would likely require either a sharp import compression or a new export engine, neither of which is yet clearly in sight.

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Sam Altman just revealed who ChatGPT is really for... India is now the second largest market. It may become the largest. They needed lower prices and more support for images. This platform shift might not be led by users in the West...

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𝗨𝗣𝗜 is the first payment system integrated into PayPal's platform 𝗣𝗮𝘆𝗣𝗮𝗹 𝗪𝗼𝗿𝗹𝗱. “Everywhere I go, India 🇮🇳 comes up.” — according to PayPal CEO Alex Chriss. PayPal’s focus will remain on connecting India to the world rather than competing in the domestic payments market, the CEO said. Speaking at the Global FinTech Festival in Mumbai, PayPal CEO Alex Chriss called India a critical market for the company’s international strategy, emphasizing its role in remittances, commerce, and technology. Chriss made it clear that PayPal’s focus isn’t on competing in India’s domestic payments space — but on connecting India to the world through cross-border payments. “We’d rather spend our time and energy creating those connections across the world and let incredible domestic products win the market here.” PayPal’s partnership with NPCI International to enable UPI-based cross-border payments is a strong signal of that intent — and a major step in making India a global FinTech exporter. “UPI is the first wallet that shows how important the India market is to us and to the entire world,” he said: https://lnkd.in/dn3WNkFC Chriss added that part of PayPal’s strength lies in its ability to facilitate global connectivity. “We established ourselves with the ability to do cross-border payments and connect the world together,” he said. “So I would rather have us focus on creating those connections across the world.” Chriss also hinted that PayPal Ventures is actively scouting for Indian startups after its early bet on Pine Labs, while outlining PayPal’s broader shift from payments to end-to-end commerce powered by AI and trust. “There’s going to be more disruption in the next 3–5 years than in the past 20 combined. I’d rather be the disruptor than the one being disrupted.” More about this, and other FinTech news updates, in my next newsletter! Sign up here: https://lnkd.in/dzj26JSZ Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

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The evolution of UPI over the past few years has been fascinating to watch — from UPI on RuPay credit cards to UPI on credit, and now the introduction of EMI on UPI. I believe this marks a significant shift where UPI TPAPs can finally start generating revenue directly from UPI instead of relying primarily on other products. This is a positive development for the ecosystem — as businesses can now begin monetising what has been their largest cost centre, paving the way for sustainable innovation and growth in digital payments.

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