LazyPay, Lending Branch PayU Indiahas updated its terms and conditions to comply with a recent directive reserve Bank of India (RBI) that barred prepaid payment instrument ,PPI) from loading credit line,

Buy Now – Pay Later (BNPL) Services in a message on Thursday asked customers to accept the terms, failing which all transactions would be stopped. lazy payment the product.

“To comply with the latest regulations, we need to block your transactions on all LazyPay products from today. To continue using LazyPay, please accept the updated T&Cs now,” the company said in a communication to customers. Said in. ET has reviewed the copy of the message.

ET was the first to report about
LazyPay plans to update its terms and conditions on 23 June.

On June 20, the central bank barred non-bank wallets and prepaid cards from loading their credit lines on these platforms.

“PPI-MD (Master Instruction) does not allow loading of PPIs from credit lines. Such practice, if followed, should be stopped immediately,” the regulator had said.

The move caused disruption among some digital lending as well as card-based fintech firms. Industry stakeholders have approached RBI for consultation.

ET reported on June 23 that
RBI’s communication on PPI was backed by the government and came after commercial lenders expressed concerns over alleged violations of rules by 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.

As a result of the RBI directive, several fintech firms such as Jupiter, EarlySalary and CreditBee temporarily barred customers from doing any transactions on their prepaid cards, ET reported, citing sources.

With regulatory uncertainty, banks like RBL are also exiting their co-branding card arrangements with fintech firms.

Earlier this week, Slice updated its terms and conditions, saying it would charge a 36% interest rate from customers for loan repayments made in more than one installment. This was a major change from its ‘pay-in-3’ repayment structure, which was disbursed through its cards.

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Reported on June 27 That the Payments Council of India (PCI) and several fintech firms had urged the government to take steps to address the fallout of the recent RBI directive.

The PCI, in its recommendations, said that fully compliant KYC PPIs should be treated at par with bank accounts and allowed to disburse credit.

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