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Card-based fintech players may have to Stop Offers

Published on June 24, 2022
Current Context: Prepaid payment instruments (PPIs) from credit lines, card-based fintech players may have to stop their offers until the RBI clears them.
Card-based fintech players may have to Stop Offers
  • PPIs from credit lines should be stopped immediately. And, non-compliance may attract action under the Payment and Settlement Systems.
  • Card-based fintech players who leveraged PPI partnerships to facilitate credit to the customers through cards will be the most affected.
  • “Buy Now pay later” products with direct merchant integration may not be affected because there is no underlying credit instrument.
  • But in the market, there is huge customer demand for flexible credit products, including credit cards, and hence there is a promising opportunity for fintech lenders to meet the demand.
  • New-age players were onboarding 300-400k people per month.
  • In the past 18 months, fintech has been leveraging PPIs to facilitate credit.


Q.1 Consider the following statements regarding Prepaid Payment Instruments.
A. Prepaid payment instruments facilitate the purchase of goods and services against the value stored on such instruments.
B. These payment instruments are licensed and regulated by the Reserve Bank of India.

Select the correct option from the below
a. Only A
b. Both A & B
c. Only B 
d. None of the above
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