Fintech Brief — October 3, 2026
Today’s Top Stories
- UPI volume rose 27% in the first half of FY27, even as the merchant-fee dispute moves toward its October 15 start.
- NBFCs originated half of India’s new-to-credit borrowers in the June quarter, double their share a decade ago.
- RBI appointed a new Executive Director to lead supervisory assessment; no new fintech-specific RBI or SEBI rule surfaced in this scan.
1. UPI clears 145 billion transactions in H1; merchant-fee dispute remains live
UPI processed about 145 billion transactions in April–September, up 27% from 114 billion in the same half of FY26, according to NPCI data reported by The Economic Times. Transaction value rose 20% to ₹177 lakh crore from ₹148 lakh crore. These are six-month totals, not a monthly run rate; the figures show the rail’s scale continuing to expand ahead of a policy change that has drawn retailer resistance. ET’s report cites NPCI data; see also NPCI’s UPI statistics.
The October 2 “No UPI Day” boycott was called off after trade groups met Finance Minister Nirmala Sitharaman. That does not mean the proposed Merchant Discount Rate has been withdrawn: the current plan is to begin on October 15, charging merchants 0.4% on specified UPI payments above ₹2,000, while person-to-person transfers remain free. The NPCI FAQ describes the framework; Mint’s report details the protest withdrawal and traders’ requests for changes. The important consumer distinction is that this is a merchant-side charge, not a new fee billed directly to UPI customers. The unresolved question is whether merchants absorb it or try to pass costs on through prices.
2. NBFCs now originate half of first-time borrowers
Non-bank finance companies accounted for 50% of new-to-credit originations in the three months ended June 2026, up from 24% in the same period of 2016, according to a TransUnion CIBIL–Finance Industry Development Council study covering about 2,000 NBFCs. “New-to-credit” means a borrower’s first loan reported to the retail credit bureau; it does not mean half of all lending or half of the population. The Economic Times’ account of the report says consumer-durable loans were the largest entry product in January–June 2026, at 30% of new-to-credit originations, followed by personal loans at 12%.
The shift matters because a first loan can create a credit record—and because a mis-sold or unaffordable loan can be a borrower’s first formal financial harm. The study says NBFCs’ share of retail-loan originations by volume rose to 43% from 33% over the decade, while their share by value reached 30%, up from 22%. One important data limitation: CIBIL does not separately observe end-use, so the study treats small loan sizes only as a proxy for phone financing. Better access is meaningful only if borrowers see the full cost, repayment schedule and consequences of missed payments before signing.
3. RBI names new head of supervisory assessment
The RBI announced on October 2 that Sudhakar Malli had been appointed Executive Director with effect from October 1. He will lead the Department of Supervision (Supervisory Assessment), after a career spanning roughly three decades, including more than 25 years supervising banks, NBFCs and co-operative banks. The RBI announcement is a leadership change, not a new compliance direction for regulated firms. SEBI’s latest relevant notice found in this scan was its October 1 Project Jagrook circular, already covered in yesterday’s brief.
Funding watch: No new India fintech private funding round with a disclosed amount or valuation surfaced in this window in the Inc42 funding feed or Entrackr; Moneyview’s stock-market debut was on October 1 and falls outside today’s 24-hour brief.