Thursday, 14 May 2020 03:49 PM MYT
Xiaomi in December launched its online lending service MiCredit in India, connecting users with Indian lending firms to access small loans. By the end of 2019, its platform had disbursed loans worth US$16.5 million .The Chinese phone brands, however, are keen to establish their own non-banking financial company which will help improve margins by allowing them to directly sell financial products to their pool of smartphone users, people familiar with their plans said.
In April, the government said it would monitor FDI from companies based in neighbouring countries, in what was widely seen as a move to keep Chinese firms from taking stakes in distressed local businesses amid the coronavirus crisis. China has called the rules “discriminatory”. And even if the RBI were to grant an NBFC permit to those who have already applied — such as Xiaomi and Oppo — companies who raise funds from the neighbouring countries will face delays on their plans as these will need government approval, he said.
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