PPI credit ban likely to hit 8-10 million BNPL users, says industry

Industry fears it may lead to systemic risk from a lending standpoint

The Reserve Bank of India’s (RBI’s) move to disallow loading prepaid payment instruments (PPIs) from credit lines may affect 8-10 million customers who are part of the “buy now pay later” (BNPL) universe, say players who are feeling the heat owing to the regulatory diktat.

The move could also result in a systemic risk from a lending standpoint because if suddenly the products are stopped, it may not be possible for customers to repay their loans.

“Eight-10 million customers will be impacted by this move. If the accounts are stopped for such customers, it would also create a systemic risk because these