RBI examining PPI credit, BNPL models; in talks with fintechs on concerns

The central bank is looking at a framework that can exist without hampering pace of innovation, even as it addresses consumer protection and cyber security concerns

The Reserve Bank of India (RBI) is examining the practices and models of prepaid payment instruments (PPI) and Buy Now Pay Later (BNPL) service providers days after the central bank reiterated its stance that regulated activities that require license cannot be practiced by fintech players, without authorisation, under the garb of innovation.

Earlier this week, the RBI directed non-bank PPI issuers not to load their wallets and cards from credit lines. Fintech players have approached the central bank seeking clarity over its directive, and the RBI is listening to their concerns, said people aware of the matter.

The concerns of