Now, Xiaomi and Oppo, with more than 100 million smart phone customers in India cannot directly lend to consumers without a shadow banking licence. Both Oppo and Xiaomi are using informal financing syndication models, which have been barred by the government now. However, these Chinese phone companies are willing to set up their own NBFC units to give loans for phones. However, hardware observers are of the view that this could be an impediment for Chinese smart phone companies as the restrictions on FDI are already quite stringent. RBI is likely to be cautious of such licenses.