What’s inside:
This article explains new rules from the Reserve Bank of India that impact rent payments through mobile apps.
Recently, the Reserve Bank of India (RBI) announced new rules that affect how people can pay rent using mobile apps like PhonePe, Paytm, and CRED. Starting now, these apps will no longer allow rent payments with credit cards.
The RBI has issued a circular stating that payment platforms can only process transactions for registered merchants with complete KYC. Since most landlords are not registered merchants, tenants cannot send rent money through these apps anymore.
This change means that tenants will need to find other ways to pay their rent. They can no longer use credit cards on these fintech apps, which means they will miss out on rewards like cashback and interest-free payments. Instead, they will have to pay using UPI, bank transfers, checks, or automatic payments.
Here are a few important points to remember: 1) Rent cannot be paid through credit cards on platforms like Paytm or PhonePe anymore. 2) Tenants will not earn reward points or cashback. 3) Payments must be made instantly without any delay.
Looking ahead, tenants must adapt to these changes by using alternative payment methods. Fintech companies will also need to adjust their business models to comply with the new RBI rules.
Summary:
- RBI has banned rent payments via credit cards on fintech apps.
- Payments can only be made to registered merchants with complete KYC.
- Tenants must use UPI, bank transfers, checks, or automatic payments now.
- No reward points or cashback will be available for rent payments.
- Fintech companies need to find new ways to operate under these rules.
