RBI restricts wallet loads from BNPL, credit lines

The central bank is tightening rules against the BNPL trend

Here are the details

Background

BNPL or Buy Now Pay Later apps have been coming up lately

BNPL apps usually provide credit with minimum KYC

RBI is looking to protect customers by restricting their use

What has happened?

The RBI has disallowed credit lines to be loaded onto prepaid wallets

You will not be able to use BNPL apps to load money onto wallets like Paytm

Non-compliance will attract penalties

Consequences

BNPL apps and credit card challengers will likely be hit

Slice, UNI, LazyPay are some of the big names in the market

Some players are planning to file an opposing petition

How does it affect you?

You won't be able to load money to wallets using BNPL apps

Some reports suggest exceptions could be made for big players

You can use debit cards, UPI, credit cards to load money

Want to know more about the biggest BNPL apps?

Here is our review of the BNPL app LazyPay!