Poket News

Non-banks not allowed to load credit lines on Prepaid Payment Instruments

 

  • The Reserve Bank of India has issued a notification barring non-bank prepaid wallets and prepaid cards from loading credit lines into these platforms. 
  • This comes in the backdrop of a boom in credit instruments such as fintech-driven credit cards and buy-now-pay-later wallets.
  • The RBI has clarified that its master directive on Prepaid Payment Instruments (PPIs) does not allow the loading of PPIs from credit lines, which is being done by several fintech credit card companies.