{"id":10835,"date":"2022-07-21T20:25:00","date_gmt":"2022-07-21T14:55:00","guid":{"rendered":"https:\/\/blogrevamp.cashfree.com\/?p=10835"},"modified":"2023-03-07T19:12:29","modified_gmt":"2023-03-07T13:42:29","slug":"rbi-bans-loading-ppis-via-credit-lines","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/rbi-bans-loading-ppis-via-credit-lines\/","title":{"rendered":"Policy Radar: RBI bans loading PPIs via credit lines"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Another version of this article was first published on&nbsp;<a href=\"https:\/\/www.finextra.com\/the-long-read\/457\/the-india-policy-series-what-does-rbis-credit-line-move-mean-for-bnpl-innovation\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Finextra<\/mark><\/a>&nbsp;dated July 20th, 2022.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Reserve Bank of India (RBI) has notified via a circular that non-bank prepaid payment instruments (PPIs) cannot be loaded through credit lines. The clarification has hit many Buy Now Pay Later (BNPL) offerings \u2013 including the new-age \u2018challenger credit cards\u2019 that were working on this model \u2013 such as PPI cards offered by fintechs, which were backed by NBFC-offered credit lines.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">BNPL offerings by fintechs are already being withdrawn (as per media reports), even as the industry has reached out to the regulator for clarity on some ambiguities within the circular. Meanwhile, the move has thrown open a discussion on the future of BNPL as well as that of fintech innovation in the country.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As of today, prepaid cards and wallets can continue to be loaded through the means specifically permitted (under section 7.5 of the RBI Master Direction on Prepaid Payment Instruments), which include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash<\/li>\n\n\n\n<li>Debit to bank account<\/li>\n\n\n\n<li>Credit and debit cards<\/li>\n\n\n\n<li>PPIs&nbsp;<\/li>\n\n\n\n<li>Other payments instruments issued by regulated entities<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Who is impacted? Are bank PPIs covered?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The communication is addressed to non-bank PPI issuers. But, whether it also applies to PPIs offered by banks is still not clear, with many suggesting these are outside the scope. For instance, a BNPL offering where the prepaid card is issued by a payments bank and the credit line is offered by an NBFC or another bank partner.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Though the RBI has been approached for clarity on this, the clarification in the circular is given for section 7.5 of the PPI Master Directions, a provision that applies to PPIs in general. The provision simply lists the modes through which any PPI can be funded, indicating that now all PPIs cannot be funded through a credit line.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that BNPL offerings from banks\/fintechs, challenger credit cards from neobanks, and even postpaid facilities via wallets using this route have been impacted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on bank vs non-bank credit lines<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The second point of ambiguity is what the term \u2018credit line\u2019 encompasses. In common parlance, it refers to on-demand credit offerings or a preset borrowing limit that the borrower can utilise based on need. These are often unsecured and may be revolving lines of credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at the circular, the crux of the RBI\u2019s concern seems to be not with PPIs being loaded by credit per se, but by a method not explicitly permitted under regulations. After all, the PPI MD does clearly permit PPIs to be loaded through credit cards.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"770\" height=\"361\" data-attachment-id=\"10839\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/rbi-bans-loading-ppis-via-credit-lines\/policy-radar-cashfree-payments-jai-prakash-mishra\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?fit=1200%2C563&amp;ssl=1\" data-orig-size=\"1200,563\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?fit=770%2C361&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?resize=770%2C361&#038;ssl=1\" alt=\"\" class=\"wp-image-10839\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?resize=1024%2C480&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?resize=300%2C141&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?resize=768%2C360&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Jai-Prakash-Mishra.png?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at it this way, an NBFC-provided line of credit that settles to a PPI directly is not allowed. However, ambiguity arises in relation to lines of credit that are linked to a bank account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, an overdraft facility provided by a bank to a customer over a savings\/current account. The PPI MD also allows PPIs to be loaded from a \u2018bank account,\u2019 without specifying the type of bank account or who owns it. This may thus include a savings account, a current account, or even a third-party account.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Going by the above explanation, it would appear that loading from this kind of overdraft facility, since it happens via a bank account, should be allowed. However, ambiguities remain on whether loading from the following is allowed:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overdraft and cash credit facilities provided to customers from banks via a separate current account, independent of the customer\u2019s existing savings\/current account.<\/li>\n\n\n\n<li>Loading with a fixed-tenure loan instead of a revolving line of credit.<\/li>\n\n\n\n<li>Loan accounts in general, which may be third-party bank accounts, not owned by the customer.<\/li>\n\n\n\n<li>NBFC-P2P lending loans, where lender funds are collected in an escrow account and then disbursed to a borrower, usually a bank account.<\/li>\n\n\n\n<li>Government offered credit lines like the&nbsp; \u2018Emergency Credit Line Guarantee Scheme\u2019 (ECLGS), say if they reach a bank account first?<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Way forward for fintech innovation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">BNPL companies and other players in this space are looking at workarounds:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>First of all, clarity from the RBI on the scope of the circular will help a lot \u2013 options like providing overdraft facilities from banks over existing bank accounts or issuance of actual loans from regulated entities.&nbsp;<\/li>\n\n\n\n<li>Immediate options in the meanwhile include an NBFC licence with approval to issue credit cards, as permitted under the recent RBI MD on credit card and debit card issuance remain an option.&nbsp;<\/li>\n\n\n\n<li>Co-branded and debit\/credit\/prepaid cards, which can be offered by banks or non-banks are another immediate option.<\/li>\n\n\n\n<li>Future options for credit payments at PoS include UPI-based credit transactions via UPI linked to credit cards (starting with RuPay), which the RBI announced earlier in June, and OCEN, which will create \u2018lending service providers\u2019 with multiple lending partners.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Is BNPL banned?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In short, no. Only one specific model is affected. It will likely be regulated however. BNPL, in fact, is on RBI\u2019s agenda, with the latest Payments Vision Document (discussed below) proposing to examine this in detail.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The RBI\u2019s report on digital lending also discussed BNPL, suggesting that instead of acting as secured\/unsecured credits going under the guise of deferred payments or the like, these be treated as part of balance sheet lending. Separately, the report also proposed that loans be disbursed to full KYC PPIs where the borrower doesn\u2019t have a bank account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Easing card payments: Extended tokenisation deadline and AFA relaxation<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This June two important steps for easing card payments have been taken:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Extending deadline for card tokenisation:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The RBI extended the deadline for card tokenisation till September 30th, which was earlier expiring on June 30th. The notification notes considerable progress with over 19.5 crore tokens created till date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The additional time has been granted to sort out any pending issues. Among the highlighted issues are, improving transaction processing that is yet to gain traction across all merchant categories and implementing systems for guest checkouts.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a separate notification, the RBI also encouraged cardholders to tokenise their cards.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For background, in order to make card payments more secure, the RBI had mandated that no one, apart from card networks and banks, can store card data. Tokenisation replaces stored card data with a randomly generated token, emerging as a good solution for merchants and payment aggregators (PAs) to continue enabling seamless card payments for customers, even without the card data.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The step has necessitated an ecosystem-wide change to card processing, which the industry has been working towards since the last year. Specific use-cases like guest checkouts, recurring payments, card EMIs, BIN-based offers, etc., each in fact necessitate different solutions to be developed.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The extension is thus a welcome step, allowing time for individual issues to be sorted and bringing in greater efficiency and success rates to the new card flows. For merchants as well, this grants additional breathing space to migrate their stored card data to a compliant form.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">RBI raises limit of e-mandates for transactions up to \u20b915,000<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For card mandates, the limit of AFA waiver of \u20b95,000 has been enhanced to \u20b915,000. This means that OTPs for recurring payments will be required only for mandates which exceed this new limit.&nbsp;<br>The relaxation isn\u2019t only for cards alone but also for UPI and PPIs. NPCI separately released a circular on this for UPI AutoPay. The circular requires all UPI apps and merchants to mandatorily enable the intent &amp; QR flow for mandates by September 30th.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"308\" data-attachment-id=\"10842\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/rbi-bans-loading-ppis-via-credit-lines\/policy-radar-cashfree-payments-rhama-viswesaran\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?fit=1200%2C480&amp;ssl=1\" data-orig-size=\"1200,480\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Policy-Radar-Cashfree-Payments-Rhama-Viswesaran\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?fit=770%2C308&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?resize=770%2C308&#038;ssl=1\" alt=\"\" class=\"wp-image-10842\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?resize=1024%2C410&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?resize=300%2C120&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?resize=768%2C307&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-Cashfree-Payments-Rhama-Viswesaran.png?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>RBI Payments Vision 2025: \u2018E-Payments for Everyone, Everywhere, Everytime\u2019&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In June, the RBI also released its Payments Vision Document 2025 \u2013 a document it issues every three years, setting out its policy agenda for payments landscape.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Last year, in the midst of the pandemic, the RBI\u2019s focus was on making e-payments quick, secure, and affordable. For this, RBI took crucial steps such as creating the regulatory sandbox, relaxing AFA requirements, waiving NEFT\/RTGS charges and making them 24&#215;7, and regulating payment aggregators to name a few.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aiming to further elevate payment systems in the country, this time the RBI has set out 47 initiatives, aiming to achieve 10 outcomes like a 3x increase in digital payments, 50% annualised growth of UPI, and increase in cards acceptance infrastructure to 250 lakhs and so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These initiatives can broadly be classified as follows based on their impact:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Innovation<\/strong><\/td><td>\u2022 Alternative authentication via behavioral biometrics, location\/historical payments, etc<br>\u2022 Regulate big tech and fintechs in payments<br>\u2022 Framework for IOT and context-based payments<br>\u2022 Link credit cards &amp; credit components of banking products to UPI<\/td><\/tr><tr><td><strong>Centralised Payment Systems<\/strong><\/td><td>\u2022 Liquidity bridge for e-Kuber\/ RTGS<br>\u2022 Payee name look-up for beneficiary check for NEFT\/RTGS\/ IMPS<br>\u2022 Support longer market trading &amp; settlement hours due to 24&#215;7 NEFT\/RTGS<br>\u2022 Review the need for IFSC for bank transfers<\/td><\/tr><tr><td><strong>Fraud\/Risk<\/strong><\/td><td>\u2022 Broader LEI use for sanctions screening, KYC, invoice reconciliation, etc&nbsp;<br>\u2022 Leverage ODR system &amp; enhance CPFIR for fraud monitoring<br>\u2022 Digital payments protection fund<\/td><\/tr><tr><td><strong>Card Payments<\/strong><\/td><td>\u2022 Interoperability for contactless transit cards<br>\u2022 Implement a national card switch for card payments at PoS<\/td><\/tr><tr><td><strong>Payment System Operators<\/strong><\/td><td>\u2022 Ring-fence domestic payments systems<br>\u2022 Increase PSO oversight including on-site inspections<br>\u2022 Regulate all payment intermediaries including offline PAs<br>\u2022 Evaluate charges for all payment systems <br>\u2022 Create payment system for processing online merchant payments using internet\/mobile banking<\/td><\/tr><tr><td><strong>International<\/strong><\/td><td>\u2022 Implementing 2FA for cross-border transactions<br>\u2022 Introduce CBDC for domestic &amp; cross-border&nbsp;<br>\u2022 Expand RTGS to settle in USD, Pound, Euro, etc.<br>\u2022 Allow other central banks to hold current\/settlement accounts with RBI<\/td><\/tr><tr><td><strong>Others <\/strong><\/td><td>\u2022 Payments for differently-abled persons<br>\u2022 Customer outreach by ramping up e-BAAT<br>\u2022 Coordinate migration of govt. receipts &amp; payments to digital mode<br>\u2022 Comprehensive review of PSS Act &amp; regulations<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other notable updates<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">RBI lifts ban on Mastercard<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The RBI has lifted its July 2021 restrictions on Mastercard for onboarding new customers, in view of satisfactory compliance with data localisation norms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Deadline extended for implementation of Master Directions on credit &amp; debit cards<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On account of the non-readiness of cards industry, the RBI has extended the deadline for the following specific provisions of its recent Master Directions on Credit &amp; Debit Card Issuance to October 1st:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(i) OTP consent credit card activation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(ii) No breach of sanctioned credit limit without explicit consent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(iii) No capitalization of unpaid charges and compounding of interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction of UPI for REITs and InvITs&nbsp;&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Increasing UPI use-cases, SEBI has allowed investors to subscribe to units of Infrastructure Investment Trusts (InvITs) &amp; Real Estate Investment Trusts (REITs) up to Rs. 5 lakhs per application value.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">MeitY declares IT resources of NPCI, HDFC Bank &amp; ICICI Bank as CII<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MeitY has declared the IT resources of CBS, NEFT &amp; RTGS of HDFC Bank and ICICI Bank and NPCI\u2019s UPI, IMPS &amp; NFS as Critical Information Infrastructure (CII) under the IT Act, 2000. This essentially means heightened cybersecurity protection under the law for these systems. For instance, a cyberattack on them can be considered as an act of cyberterrorism (punishable with imprisonment up to a lifetime).&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rajya Sabha report on regulation of e-commerce&nbsp;&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A Rajya Sabha Parliamentary Standing Committee has published a Report on Promotion &amp; Regulation of E-commerce. Among its many suggestions is setting up of a comprehensive regulatory framework for e-commerce players &amp; enhanced CCI powers. It also includes some specific suggestions for PSOs such as revisiting zero MDR, periodic cybersecurity audits for PAs &amp; strengthening infrastructure to mitigate transaction failure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PIDF status update&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The PIDF scheme for payments infra (PoS terminals) subsidies has been reviewed to enhance the subsidy amount &amp; simplify the claim process. As of end-April 2022, its total corpus stands at Rs. 811.4 crore, with the deployment of 1.18 crore devices.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">RBI publishes 3rd cohort of regulatory sandbox&nbsp;&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The RBI has published the list of selected entities for the 3rd cohort on MSME lending. Also, the theme for the 4th cohort of the RBI\u2019s regulatory sandbox has been announced, which is Prevention and Mitigation of Financial Fraud.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><em>This edition has been assisted by Urmil Shah and edited by Sunny Lamba.<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>References<\/strong>:<\/mark><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/twitter.com\/artijourno\/status\/1538895827560583170\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">PPI Circular<\/mark><\/a> | <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=12345&amp;Mode=0\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Tokenisation extension<\/mark><\/a><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"> | <\/mark><a href=\"https:\/\/rbidocs.rbi.org.in\/rdocs\/notification\/PDFs\/NOTI737FE6EE857FB94235BD31DCA38E14ACC9.PDF\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">E-mandate limit<\/mark><\/a><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"> | <\/mark><a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53886\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">RBI Payments Vision Document<\/mark><\/a> | <a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53877\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">RBI Mastercard Ban<\/mark><\/a> | <a href=\"https:\/\/www.sebi.gov.in\/legal\/circulars\/jun-2022\/introduction-of-unified-payments-interface-upi-mechanism-for-real-estate-investment-trusts-reits-_60070.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">UPI for REITs<\/mark><\/a> | <a href=\"https:\/\/egazette.nic.in\/WriteReadData\/2022\/236680.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">HDFC<\/mark><\/a><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"> <\/mark><a href=\"https:\/\/egazette.nic.in\/WriteReadData\/2022\/236681.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">ICICI<\/mark><\/a><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"> <\/mark><a href=\"https:\/\/egazette.nic.in\/WriteReadData\/2022\/236682.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">NPCI<\/mark><\/a><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"> <\/mark>| <a href=\"https:\/\/rajyasabha.nic.in\/rsnew\/Committee_site\/Committee_File\/ReportFile\/13\/159\/172_2022_6_14.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Regulation of E-Commerce<\/mark><\/a> | <a href=\"https:\/\/rajyasabha.nic.in\/rsnew\/Committee_site\/Committee_File\/ReportFile\/13\/159\/172_2022_6_14.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">PIDF<\/mark><\/a> | <a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53813\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">RBI 3rd Cohort<\/mark><\/a> | <a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=53814\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">RBI 4th Cohort<\/mark><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another version of this article was first published on&nbsp;Finextra&nbsp;dated July 20th, 2022. The Reserve Bank of India (RBI) has notified via a circular that non-bank prepaid payment instruments (PPIs) cannot be loaded through credit lines. The clarification has hit many Buy Now Pay Later (BNPL) offerings \u2013 including the new-age \u2018challenger credit cards\u2019 that were<\/p>\n","protected":false},"author":11,"featured_media":10859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1,1412],"tags":[],"class_list":["post-10835","post","type-post","status-publish","format-standard","has-post-thumbnail","category-all","category-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Policy Radar: RBI bans loading PPIs via credit lines<\/title>\n<meta name=\"description\" content=\"Your monthly dose of all policy-related updates for the payments industry. Hop in to read major policy changes for the month of June 2022.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cashfree.com\/blog\/rbi-bans-loading-ppis-via-credit-lines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Policy Radar: RBI bans loading PPIs via credit lines\" \/>\n<meta property=\"og:description\" content=\"Your monthly dose of all policy-related updates for the payments industry. Hop in to read major policy changes for the month of June 2022.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cashfree.com\/blog\/rbi-bans-loading-ppis-via-credit-lines\/\" \/>\n<meta property=\"og:site_name\" content=\"Cashfree Payments Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-21T14:55:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-07T13:42:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2022\/07\/Policy-Radar-RBI-bans-PPI-loading-via-credit-lines.png?fit=1200%2C800&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Asheeta Regidi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Policy Radar: RBI bans loading PPIs via credit lines\" \/>\n<meta name=\"twitter:description\" content=\"Your monthly dose of all policy-related updates for the payments industry. 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