NEW DELHI : State Financial institution of Mauritius India advised its fintech companions, together with Slice and Uni, on 17 August that it plans to cease onboarding new clients for credit score on PPI (pay as you go instrument), three individuals conscious of the matter stated.
Which means that the fintech companions who used SBM Financial institution India’s PPI BIN (financial institution identification quantity) to situation pay as you go playing cards to clients and additional loaded these playing cards with credit score strains will be unable to onboard new clients.
The financial institution stated it’s on the lookout for additional readability from the Reserve Financial institution of India on this mannequin, the individuals cited above stated, requesting anonymity.
Whereas confirming that Uni has acquired the communication from SBM, Uni founder Nitin Gupta stated, “Uni stopped onboarding new clients on 20 June itself.”
On 20 June, RBI issued a letter addressed to all non-bank PPIs (pay as you go instrument or pockets) licence holders stating that PPIs can’t be loaded with credit score strains. SBM Financial institution India and Slice are but to reply to Mint queries.
Whereas the financial institution hasn’t clarified what occurs to current clients, in accordance with one of many individuals conscious of the matter, the financial institution will proceed to service current clients. “The transactions are nonetheless going via for current clients,” he stated.
RBI’s twentieth June round introduced the credit score line-linked pay as you go playing cards that allowed BNPL (purchase now, pay later), together with Slice, Uni, LazyPay, PostPe, MobiKwik, Ola Postpaid, EarlySalary, and a few neobanks. SBM Financial institution was one of many most popular PPI issuers to fintech companies. Most companies have been working with SBM by way of an API infrastructure agency M2P, which helped most of those pay as you go card fintechs hook up with the financial institution’s PPIs.
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Supply: Live Mint