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Ban on loading through credit lines: PPIs call for clarity from RBI

Opinion is divided over whether or not the circular will impact the popular 'Buy Now Pay Later (BNPL)' schemes offered by many fintechs

Topics
Reserve Bank of India | NBFCs | Amazon Pay

Subrata Panda  |  Mumbai 

Photo: Bloomberg
BNPL is essentially a short-term loan product, wherein the lender pays the merchant or service provider at the point-of-sale and the customer can repay the loan at a future date with some charges. Photo: Bloomberg

The Reserve Bank of India’s (RBI’s) notification disallowing non-bank prepaid payment instruments (PPIs) from loading their instruments through credit lines has sent industry players into a tizzy.

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First Published: Tue, June 21 2022. 22:13 IST
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