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Payments Council seeks government help post-RBI’s fintech order

June 27, 2022

Payments Council seeks government help post-RBI’s fintech order
The Payments Council of India (PCI) and several fintech firms have urged the government to step in to resolve the fallout from a recent directive by the Reserve Bank of India (RBI) that barred payment companies from loading credit lines onto wallets and prepaid payment instruments (PPIs).

The council – under the Internet and Mobile Association of India (IAMAI) – said wallets that comply fully with know your customer (KYC) norms should be treated on par with bank accounts, and that they should be allowed to disburse credit.

The council had last week sought inputs from fintech firms and digital lending startups following the RBI diktat.

PCI said that “a drawdown by the customer from a non-revolving credit line (which has been given by a regulated lender) should be allowed to be disbursed into a full KYC PPI.”

This essentially means that it is seeking a reversal of the RBI order published last week.

A non-revolving credit line is a concept where the credit is ‘non-replenishable’ unless the customer is being underwritten again for a new credit line and has a clear repayment schedule with no minimum due.

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