Objecting to the investments made by the Chinese firms in the domestic non-banking financial companies (NBFCs), a BJP MP on Wednesday said in Rajya Sabha that such picking up of stakes in the Indian companies like Paytm poses a “grave danger to national security”. With Alibaba-backed Paytm applying for NBFC license, the Chinese company is seeking to capture domestic lending market through predatory pricing and dumping, PTI reported citing BJP’s Rajya Sabha MP Narendra Jadhav (Nominated). Alibaba would get access to private data and expose India to “geopolitical risks”, he added.
Furthermore, Chinese companies if allowed to take hold of the NBFC sector can result in predatory pricing, he added. 100 percent FDI in NBFCs will destroy domestic financial services sector, he also said. He saw this as “surreptitious Chinese aggression” and said unfettered access can destroy strong fabric of services sector in India, PTI report said.
The issue has been of foreign participation has been raised in the NBFC sector in parliamentary panel on finance, he said.
Meanwhile, SoftBank Group Corp. plans to announce within days that it will start a mobile digital payments service in Japan by the end of 2018 as billionaire founder Masayoshi Son seeks to expand in the sector, people familiar with the matter told Bloomberg. The service, a collaboration with Indian startup Paytm, will make extensive use of artificial intelligence for mobile payments and other financial services, the people said, asking to not be identified as the plans are private, Bloomberg report said.
Dozens of Paytm employees are working in Tokyo on getting the service up and running, one of the people said. Son, who created the world’s largest technology investment fund, is moving into a crowded field as local banks and technology companies stake their claims.