Fintech Brief — March 12, 2026

Today’s Top Stories

1. RBI Allows UPI Access for Prepaid Payment Instruments

The Reserve Bank of India (RBI) has issued a significant circular in March 2026, permitting full-KYC compliant Prepaid Payment Instruments (PPIs) to be linked with UPI-enabled apps like Google Pay, PhonePe, and Paytm. This landmark decision allows users to make and receive UPI payments directly from their digital wallets and prepaid instruments, significantly enhancing interoperability and convenience in India’s digital payment ecosystem.

The new framework involves pre-authorization and secure authentication using existing PPI credentials, effectively aligning PPIs with bank accounts in UPI transactions. This move aims to promote financial inclusion and provide a seamless user experience across India’s rapidly evolving digital payment landscape. 1

2. India’s Neobank Fi Winds Down Banking Services

India’s prominent neobank Fi (formerly EpiFi) is discontinuing banking services on its platform, more than four years after launching them in partnership with Federal Bank. Customers who opened accounts through the Fi app have received emails stating that banking services will be discontinued, though their savings accounts with Federal Bank remain active and fully operational.

Founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi launched its app-based banking service in partnership with Federal Bank in 2021 to offer digital savings accounts and money management tools aimed at younger users. Federal Bank has stated that the partnership with Fi is ending as part of a “business re-alignment.” 2

3. Indian Fintech Startup Funding: Multiple Rounds Announced

The Indian fintech ecosystem continues to attract significant investor interest:

  • Bizongo, a B2B platform specializing in business financing and raw material procurement, secured $50 million in Series E funding led by Schroder Adveq. The Mumbai-based company has raised approximately $310 million across multiple funding rounds. 3

  • Kiwi, a fintech startup specializing in virtual credit card payment solutions, raised $24 million in Series B led by Vertex Ventures Southeast Asia & India in August 2025. The company has raised a total of approximately $42.9 million and aims to revolutionize credit accessibility in India by combining credit card benefits with UPI payments. 4

  • Pelocal Fintech, specializing in digital payment solutions and automation for merchants, secured $7 million in Series A funding led by Unicorn India Ventures. 5

4. Global Fintech Roundup: Revolut & Alan

In international fintech news, Revolut has received regulatory approval from the UK’s Prudential Regulation Authority (PRA) to transition out of the mobilisation phase and officially launch as a fully licensed bank in the UK. The company first applied for its UK banking license in 2021 and entered the mobilisation phase in July 2024. 6

Meanwhile, French health insurance startup Alan has reached a €5 billion valuation (approximately $5.83 billion) after raising a €100 million round led by Index Ventures. The company also declared operational profitability in its home country of France. 7

Sources:

  1. https://timesofindia.indiatimes.com/articleshowprint/116750577.cms ↩︎

  2. https://techcrunch.com/2026/03/11/india-neobank-fi-winds-down-banking-services-on-its-platform/ ↩︎

  3. https://bizongo.com/ ↩︎

  4. https://gokiwi.in/ ↩︎

  5. https://pelocal.com/ ↩︎

  6. https://www.fintechfutures.com/digital-banking/revolut-lands-full-uk-banking-licence-approval ↩︎

  7. https://techcrunch.com/2026/03/11/health-insurance-startup-alan-reaches-e5b-valuation/ ↩︎