Pine Labs, CAMS, Moneyview, other fintech stocks rally up to 11% after RBI MPC move. Here’s why

Shares of Pine Labs, recently-listed Moneyview and other fintech firms jumped up to 11% on Wednesday after RBI Governor Sanjay Malhotra announced that the Indian central bank will allow interoperability among NBFC account aggregators.

The move will enable the aggregation of financial information across all account aggregators through a single aggregator, Malhotra said as he announced the decisions taken by the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) during its October policy meeting.

Also read | RBI raises policy rates 25 bps to tame inflation as India hurdles growth barriers

How can interoperability among account aggregators benefit customers?

RBI’s move will allow interoperability among account aggregators (AA), which would help reduce friction related to customers onboarding and aided in wider financial adoption, said Sunny Agrawal, Head of Fundamental Research at SBI Securities. Under the new framework, a borrower already registered with one AA would be able to share her financial information with another AA without fresh registration, with her prior consent, he explained.

Agrawal believes that the move would be beneficial for digital lenders and fintech companies. Pine Labs shares rallied around 6% to trade at nearly Rs 185 apiece on NSE. Paytm shares jumped more than 4%, while CAMS shares gained 2%. Recently-listed Moneyview shares meanwhile surged around 11%.

Also read | PNB, Kotak Mahindra Bank, other bank stocks rise up to 2% after RBI’s rate hike, Nifty Bank above 55,500

RBI hikes rates for first time in 4 years

RBI Governor Sanjay Malhotra announced that the Indian central bank’s Monetary Policy Committee’s (MPC) decision to increase the policy repo rate by 25 basis points to 5.5%. It also decided to change the policy stance from ‘Neutral’ to ‘Calibrated tightening’ amid geopolitical uncertainties.

"The MPC noted that the global context, on account of geopolitical developments, remains challenging. Nonetheless, the Indian economy has been strong, and the economic momentum remains broad based. 
Moreover, the economy is expected to remain resilient,” Malhotra said.

RBI also announced measures to allow SEBI-registered depositories to include customer deposits in their statements, as Governor Sanjay Malhotra announced the Indian central bank’s October monetary policy measures. RBI said this measure will be implemented by the end of 2026. The move is expected to let relevant customer information be reflected in statements issued by registered depositories. This will let investors access information on bank deposits alongside their securities, equity and debt holdings in one consolidated statement, easing control of their finances.

Also read | RBI allows Sebi-regulated depositories to include customer deposit details in statements: What changes for investors?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.