RBI Tightens Credit-On-UPI Rules, NBFCs Stay Locked Out
RBI reiterated that UPI-linked credit lines must follow the same prudential norms as traditional loans, closing loopholes exploited by fintechs and banks. Consumer experience is largely unchanged, but back-end compliance burdens tighten while NBFCs remain barred from offering credit on UPI.
RBI has reiterated that credit lines offered via UPI must follow the same prudential norms as traditional loans, closing loopholes used by fintechs and banks. Impact on consumer experience is minimal but back-end compliance tightens; NBFCs remain excluded from credit-on-UPI.
Why this matters
Extends RBI's tightening stance on digital credit and fraud liability, reinforcing that UPI credit stays a bank-only product and fintechs must operate under bank-grade rules.
Retail-company signals steady at 3,791 over the last 90 days, signaling sustained regulatory and corporate activity.