RBI Tightens Credit-on-UPI Rules, Keeps NBFCs Out of the Loop
RBI has reiterated that credit lines disbursed through UPI must comply with the same prudential lending norms as conventional loans, closing operational loopholes for fintechs and banks. NBFCs remain excluded from the credit-on-UPI rails, capping near-term adoption and forcing back-end process overhauls.
RBI has reiterated that credit lines offered via UPI must follow the same prudential lending norms as traditional loans, closing loopholes. Impacts back-end operations of fintechs and banks; NBFCs remain excluded from credit on UPI, limiting uptake.
Why this matters
Reinforces RBI's tightening stance on digital credit and consumer protection, following its move forcing fintechs to apply bank-grade prudential norms and new caps on digital fraud liability.
Retail-company signals steady at 3,780 over the last 90 days, with regulatory tightening a recurring driver.