Mufin Finance Ltd., a subsidiary of Hindon Mercantile Ltd., said it would offer semi-closed prepaid payment instruments (PPI) to customers in India.
The Reserve Bank of India (RBI) recently provided in-principal authorisation to NBFC Hindon Merchantile for issuance of semi-closed prepaid payment instruments. Mufin Finance will use this permit to roll out MufinPay, a digital payment solution which will complement its lending business.
A semi-closed PPI licence allows digital banks, fintech firms, and large consumer-facing applications to roll out features such as digital payment solutions for lending.
“Mufin Finance was started with the aim of making an impact among the underserved sections of India. With this license, we will be able to offer a much wider range of complementing products for our customers,” said Rajat Goyal, co-founder, Mufin Finance.
“We will also be able to build better and deeper partnerships with consumer companies as well as corporates, furthering the journey of financial inclusion we started 6 years ago,” he added. PPI can come in the form of digital wallets, smart cards, magnetic chips and vouchers.
