Team Blitz India
NEW DELHI: From July 1, credit card users will be unable to make repayments on third party fintech applications for banks that have not come on board Bharat Bill Payments System (BBPS).Many players said they will pause credit card payment for banks that have not gone live, as per a Business Standard report.
Some of the fintechs that will get impacted include Cred, Paytm, Phonepe and Amazon Pay, among others.
“In line with RBI guidelines, we will facilitate credit card bill payments only for banks that are part of the Bharat Bill Payment System (BBPS) starting from July 1, underscoring our commitment to adhering to regulatory guidelines and providing compliant payment solutions to our users,” a Paytm spokesperson said.
“Some of the industry players have decided that they will not process such payments for non-compliant lenders. Third party entities will not be able to process such transactions or use any other alternative to do so,” a senior executive at a fintech major said.
Senior fintech executives said some firms may process credit card transactions for non-compliant banks, but doing so would be a violation of RBI norms.
“It will depend on the risk appetite of a player if they continue, but it will be in violation of the RBI regulations. Ideally, most banks could have come on board by now, but with the deadline closed in, the industry expects they will fast-track the process,” an industry executive added.
