RBI Tightens Credit-On-UPI Rules, Forcing Fintechs To Apply Bank-Grade Prudential Norms
RBI's reiterated directions require UPI-linked credit lines to follow the same underwriting, provisioning and disclosure norms as traditional loans. The move closes fintech workarounds and reshapes back-end economics of EMI and pay-later rails that power a growing share of Indian retail consumer spend.
RBI reiterates that UPI-linked credit lines must follow the same prudential norms as traditional loans, closing loopholes for fintechs and banks. Impacts back-end operations of payment rails powering Indian retail consumer credit and EMI flows.
Why this matters
Continues RBI's tightening cycle on digital payments and fintech rails, following recent fraud liability caps requiring 85% refunds and draft PPI rules squeezing wallet limits at Paytm, PhonePe and MobiKwik.
Retail-company signals steady at 3,778 over the last 90 days, with regulatory action a recurring driver.