The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) has introduced new rules that affect how rent payments can be made through fintech apps. From now on, tenants and landlords will need to adjust to alternative payment methods, as popular apps like PhonePe and paytm will no longer support rent payments via credit cards. Here’s what you need to know:
🏦 1. Why the Change Happened
RBI’s guidelines aim to regulate high-value transactions and reduce credit card misuse. Credit card payments for recurring expenses like rent were considered high-risk transactions, prompting fintech apps to disable this facility.
💳 2. Apps Affected
Apps like PhonePe, paytm, google Pay, and amazon Pay will no longer allow credit card rent payments. However, debit cards, net banking, and UPI payments are still permitted in most cases.
🏠 3. Alternative Ways to Pay Rent
Tenants can continue paying rent via:
- UPI apps (Google Pay, PhonePe, paytm, but not via credit card)
- Net banking / bank transfer
- Post-dated cheques or auto-debit from savings account
These methods ensure timely payments without violating RBI rules.
⚠️ 4. Impact on Tenants and Landlords
Tenants who relied on credit card payments for reward points or deferred payments may need to adjust their budgets. Landlords must also adapt to receiving payments through direct bank transfers or other approved modes.
📈 5. Benefits of the New Rule
While inconvenient for some, this move reduces transaction risk and encourages safer payment methods. It also helps tenants avoid accumulating credit card debt due to high recurring payments.
🧾 6. Stay Updated on App Changes
Fintech apps may update their UPI and debit card features to compensate for the credit card restrictions. Tenants should regularly check app notifications to ensure smooth rent payments.
💡 7. Pro Tip: Automate Payments Safely
Set up auto-debit or UPI recurring mandates for rent to avoid missed payments and late fees. This ensures timely payment and compliance with RBI guidelines.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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