# Non-banks can't load credit lines on prepaid payment instruments, says RBI **URL:** \ **Category:** General\ **Tags:** news\ **Created:** [20 June 2022 19:35 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725 "2022-06-20T19:35:21Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [20 June 2022 19:35 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/1 "2022-06-20T19:35:21Z")
Here’s the sauce: > **[Non-banks can't load credit lines on prepaid payment instruments, says RBI](https://economictimes.indiatimes.com/tech/technology/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/articleshow/92344067.cms)** > > This diktat by the banking regulator is being seen as an effort to clampdown on card fintech and firms operating as neo-banks who have tied up with banks to offer credit lines. But would this impact Jupiter Edge? 🤔 ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 05:41 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/2 "2022-06-21T05:41:02Z")
Yeah it does unfortunately😢 RBI Says this🔽 > **[Payments tech economy’s lifeline, vital for financial inclusion: RBI governor...](https://economictimes.indiatimes.com/markets/stocks/news/payments-tech-economys-lifeline-vital-for-financial-inclusion-rbi-governor/articleshow/84461825.cms)** > > India Business News: MUMBAI: RBI governor Shaktikanta Das has said payment systems are seen to be the lifeline of an economy and are now recognised as a means of achieving. And does this🔽 > **[RBI says non-banks can't load credit lines on prepaid instruments; investors...](https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/rbi-says-non-banks-cant-load-credit-lines-on-prepaid-instruments-investors-spooked-as-defi-bubble-pops/articleshow/92348183.cms?from=mdr)** > > On Monday evening the Reserve Bank of India issued a clarification on prepaid payment instruments (PPIs) such as wallets and prepaid cards, saying non-bank institutions cannot load credit lines onto them. ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 05:42 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/3 "2022-06-21T05:42:55Z")
Id say it’s sorta unfair that they can’t get their ducks in a row. Neobanks is the next frontier, and it needs to be nurtured. Regulations are great, but needs to be done in moderation, and not as efforts to stifle it. Hope they are seeing this one through. Neobanks do need to grow. ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 05:51 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/4 "2022-06-21T05:51:11Z")
Had really started liking Lazypay, Jupiter and now this. I don’t know if @Jiten, @Shawnpinto, or Jupiter legal team is aware of this. The regulations were issued yesterday evening. @nateavi It says Credit line,so I understand Slice and Lazypay Use credit line ,even Jupiter edge too but how come Jupiter and Fi falls into this category 🤔 Btw I am trying to upload a screenshot on this website and it doesn’t load,can you check if this is a sitewide issue or it’s just me. Here’s the screenshot > **[IMG\_20220621\_105342.jpg](https://drive.google.com/file/d/1b-AEHvO9UklY79MO6s_YZw1mA8WRaMpS/view?usp=drivesdk)** > > Google Drive file. ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 05:54 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/5 "2022-06-21T05:54:57Z")
Since when does FI have a credit line? 🤔 ---
**Author:** ![Jiten](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/jiten/32/72_2.png) [@Jiten](https://community.jupiter.money/u/Jiten)\ **Post date:** [21 June 2022 05:59 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/6 "2022-06-21T05:59:34Z")
We are aware of this. So for now, Jupiter Edge BNPL product goes for hold until we obtain regulatory clarity on same. In fact, this impacts all BNPL apps including Lazypay, Slice, Uni. Anybody operating post this guidelines would be in breach. Jupiter app is outside of purview of this regulation. It is a structured partnership on deposit account with partner bank Federal. No credit risk is taken by Federal or Jupiter there. ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 06:30 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/7 "2022-06-21T06:30:20Z")
But would this impact any future credit line products from Jupiter app (not edge) tho? ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:30 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/8 "2022-06-21T06:30:56Z")
@nateavi First Bullet had some regulatory issues and now this with Jupiter Edge. Why is RBI restricting the Fintechs which will become much more predominant than traditional banks in coming years. @Jiten I hope it doesn’t take as much time as it did for Bullet. BTW Freopay too is a paylater plateforms, but the newspaper doens’t mentions its name. Is it because they aren’t as popular as Jupiter or do they have a different model? Also I have another question 🤔 I did an FD in Lazypay for credit limit increase and that’s not counted as a Credit line so I can still continue using that ,right? ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 06:32 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/9 "2022-06-21T06:32:43Z")
No clue what’s going on with RBI. Probably is due to the incessant lobbying by traditional banks to stifle neobanks’ growth. Just a guesstimate, and I maybe wrong there. Meanwhile, I hope credit cards based on FD are encouraged a lot more. India is a very savings conscious country. This would help. Im considering opting for paisabazaar’s secured credit card. ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:45 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/10 "2022-06-21T06:45:18Z")
You have ONECARD already I guess. If no go for this one instead of Paisabazar Smart Card or maybe wait for INDmoney Supersaver FD backed Credit card. ---
**Author:** ![CarolinMerces](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/carolinmerces/32/20885_2.png) [@CarolinMerces](https://community.jupiter.money/u/CarolinMerces)\ **Post date:** [21 June 2022 06:50 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/11 "2022-06-21T06:50:00Z")
You should provides us a limit from bank like IDFC BANK btw Thanks RBI ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:52 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/12 "2022-06-21T06:52:48Z")
Even if they do , I am afraid this regulation would still apply. ---
**Author:** ![CarolinMerces](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/carolinmerces/32/20885_2.png) [@CarolinMerces](https://community.jupiter.money/u/CarolinMerces)\ **Post date:** [21 June 2022 06:53 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/13 "2022-06-21T06:53:34Z")
No banks are not affected As i think ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 06:54 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/14 "2022-06-21T06:54:09Z")
Isn’t one card reliant on credit scores? ---
**Author:** ![CarolinMerces](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/carolinmerces/32/20885_2.png) [@CarolinMerces](https://community.jupiter.money/u/CarolinMerces)\ **Post date:** [21 June 2022 06:54 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/15 "2022-06-21T06:54:56Z")
![IMG_20220621_122424_251](https://us1.discourse-cdn.com/flex020/uploads/jupiter/original/2X/1/1f87b33c72a4433a56357d3fd48f68c0afa0dbeb.jpeg) ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:55 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/16 "2022-06-21T06:55:31Z")
I understand that IDFC is a bank as well as a lender however Jupiter being a non banking entity puts it into the peril of this regulation. ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:58 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/17 "2022-06-21T06:58:03Z")
This is for the entities that have prepaid instruments. I think the credit card ones backed by Bank Credit line or Loan would work just fine. Open to suggestions and corrections @Shawnpinto @Jiten @nateavi @CarolinMerces ---
**Author:** ![nateavi](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/nateavi/32/10064_2.png) [@nateavi](https://community.jupiter.money/u/nateavi)\ **Post date:** [21 June 2022 06:58 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/18 "2022-06-21T06:58:29Z")
I think the Techno guy is making stuff up as he goes. > This diktat by the banking regulator is being seen as an effort to clampdown on card fintech and firms operating as neo-banks who have tied up with banks to offer credit lines. RBI is cool with neobanks using credit cards, but they can’t offer any credit lines (be it BNPL or physical/virtual cards). It’s lame, and totally uncool. ---
**Author:** ![Mukesh\_kumar\_Bharti](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/mukesh_kumar_bharti/32/21910_2.png) [@Mukesh\_kumar\_Bharti](https://community.jupiter.money/u/Mukesh_kumar_Bharti)\ **Post date:** [21 June 2022 06:59 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/19 "2022-06-21T06:59:17Z")
Exactly ---
**Author:** ![CarolinMerces](https://sea2.discourse-cdn.com/flex020/user_avatar/community.jupiter.money/carolinmerces/32/20885_2.png) [@CarolinMerces](https://community.jupiter.money/u/CarolinMerces)\ **Post date:** [21 June 2022 06:59 UTC](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725/20 "2022-06-21T06:59:39Z")
Techno guy holds a Amex US and Amex India card so i think he knows [Next page](https://community.jupiter.money/t/non-banks-cant-load-credit-lines-on-prepaid-payment-instruments-says-rbi/33725.md?page=2)