RBI's credit line norms: Card-based fintech players may have to stop offers

Some of the players expected to take a hit due to the RBI's diktat are Slice, Uni Cards, Jupiter, EarlySalary, etc

In the light of the Reserve Bank of India (RBI) not permitting the loading of prepaid payment instruments (PPIs) from credit lines, card-based fintech players may have to stop their offers until the central bank clears the air on some issues.

Earlier this week, the RBI wrote to some non-bank PPI issuers, stating that the direction on this did not permit loading PPIs from credit lines. Such practice, if followed, should be stopped immediately. And, non-compliance may attract action under the Payment and Settlement Systems Act, 2007.

This has worried fintech lenders. Industry insiders are of the opinion that card-based