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 issued new guidelines impacting rent payments via credit cards on fintech platforms. Apps like PhonePe, Paytm, and Cred will no longer support this facility, reshaping how tenants pay rent digitally. Here’s a detailed look:
⚡ 1. What’s Changing?
- Fintech apps can no longer allow rent payments using credit cards
- Debit cards, UPI, and bank transfers remain unaffected
- The move aims to curb rising debt and maintain financial discipline
🏦 2. Why RBI Took This Step
- Credit card rent payments often lead to high-interest debt
- Tenants may overspend during high-rent months, risking financial stress
- Ensures fintech companies comply with regulatory lending guidelines
📱 3. Apps Affected
- PhonePe: No more credit card rent payments
- Paytm: Credit card option disabled for rent
- Cred: Previously popular for rent payments using cards
- UPI and net banking options remain fully functional
💳 4. Alternative Payment Methods
Tenants can still pay rent via:
- Debit cards
- Bank account transfers / NEFT / RTGS
- UPI apps
These methods are interest-free and encourage safer financial practices
📝 5. Tips for Tenants
- Plan monthly rent payments using debit cards or UPI to avoid delays
- Set up auto-pay through bank accounts for convenience
- Track transactions for proof of payment
🛡️ 6. Benefits of RBI Rule
- Reduces credit card misuse for large recurring payments
- Encourages responsible borrowing and spending
- Protects tenants from unnecessary interest charges
💡 7. Final Takeaway
While the change may inconvenience some users, it is designed to promote financial discipline and reduce credit card debt. Tenants should adapt to UPI and bank transfers for rent payments to avoid disruptions.
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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