The Reserve Bank of India’s move to allow up to 100% foreign direct investment (FDI) in regulated financial services companies other than banks or insurance companies through the automatic route is likely to benefit several fintech startups as it is expected to ease equity funding norms, increase investor interest, and also help them expand into more financial services. So far, activities of NBFCs such as underwriting, investment advisory and stock broking were among 18 categories under the 100% FDI automatic route regime. Startups that didn’t fall in these categories had to take the approval route. Now, all regulated financial services companies can take the automatic route.

(Economic Times)