Recently Buy Now Pay Later Cards banned by RBI because of RBI’s new set of rules being implemented. On 20th June, Monday Reserve Bank Of India issued a notification forbidding all of its operations in non-banking institutions along with fintech companies which include “Buy Now Pay Later Service” from loading credit lines into PPI (Prepaid Payment Instruments) such as wallets & prepaid cards.
According to RBI : All PPI-MD does not permit loading of PPI’s from credit lines. If such kind of practices do continue, such practice should immediately be stopped. Any non-compliance in this regard may attract penal action under provisions contained in the Payment & Settlement System Act, 2007.