Bajaj’s note has come after a circular from the Reserve Bank of India (reserve Bank of India) last month
Got the FinTech Industry in Trouble As a directive to industry stakeholders, Prepaid Payment Instruments (PPIs) have been barred from being loaded with credit lines.
While industry associations are demanding more clarity from the RBI and the government on the matter, Bengaluru-based Slice and Uni Cards are seen as the most likely to be hit by the RBI note in June.
“Today, we are extremely well capitalised, our credit risk numbers are among the best globally and our mouth-to-mouth customer acquisition is stronger than anyone else in our space,” Rajan said in his note. ETtech has reviewed it.
“Their (RBI) main objective has always been to serve the Indian citizens better. At Slice, the entire premise of our existence is to provide world class customer experience in India. There is a huge overlap in our objective with the RBI’s objective. “We are committed to adhering to an ever-expanding set of laws and regulations as well as maintaining the highest standards of governance and ethical business conduct,” Bajaj wrote in his email to Slice employees on Friday morning.
“This environment demands that every team member and leader be committed to regulatory excellence. I am confident that as long as we continue to operate with integrity, customer focus and transparency, we will
In this phase and hopefully this area will become even more healthy. That’s what we need to focus on!”
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Earlier in May, Slice said
Was focusing on Unified Payments Interface (UPI) And it wanted to diversify from just a card-based credit line business as other payment methods on its app.
at
Reported on June 23 The RBI’s communication on PPIs was backed by the government and came after commercial lenders expressed concern over alleged violation of norms. fintech companies.
These concerns include violation of Know Your Customer (KYC) norms and Anti-Money Laundering (AML) guidelines by fintech firms, ET quoted sources as saying.
Following the order, the fintech industry began consultations with the RBI to clarify communications, industry body Payments Council of India (PCI) said in a statement.
joint representation to the government on this subject.
PCI in its letter said that wallets that are fully compliant with Know Your Customer (KYC) norms should be treated at par with bank accounts and allowed to disburse credit.
The RBI’s recent move against credit lines has caused disruption among digital lending and card-based fintech firms, with the industry reaching out to the central bank for advice.
Fintech firms such as Jupiter, EarlySalary and CreditBee have also temporarily barred customers from making any transactions on their prepaid cards, ET.
Reported on June 23 Citing sources.
Those cited above said players such as Slice and Uni, which have been hit hardest by the move, have slowed down issuing new credit cards as regulatory uncertainty continues.
More recently, PayU’s lending branch lazy payment Too
Updated your terms and conditions To follow the recent market instruction. ET first
Reported on July 5thAmid rising regulatory concerns for card-based credit fintech firms, it has temporarily disabled support for buy-now-pay-later (BNPL) payment product LazyPlus UPI for its existing user base as well.
Sources told ET that the company is looking to relaunch its credit card ‘LazyPay Card’ as a credit card instead of a prepaid offer and re-issue them to customers to comply with RBI’s directions.