RBI tightens credit-on-UPI rules, keeps NBFCs out of the lending pipe
RBI has reiterated that UPI-linked credit lines must follow the same prudential norms as traditional loans, shutting loopholes used by banks and fintechs. Back-end ops will shift, but credit-on-UPI stays gated to banks — leaving NBFCs and fintech lenders on the sidelines of one of India's fastest-growing rails.
RBI has reiterated that credit lines offered via UPI must follow the same prudential lending norms as traditional loans, closing loopholes used by fintechs and banks. Impacts back-end operations but credit on UPI remains gated to banks, excluding NBFCs.