FinTech news in RBI category

UPI Lite, which was first proposed earlier this year, processes payments below 200 Indian rupees ($2.5) and is aimed at lowering the burden on banks’ infrastructure, executives said at a conference Tuesday. He said a lighter version of the payments system, called UPI Lite, is now live in the country with eight banks including HDFC, SBI and Kotak. The payments network, which was built by a coalition of banks, is India’s attempt to challenge card companies in an open market, bring hundreds of millions of people into the fold of digital payments and curb the proliferation of corruption. On Tuesday, Das said two new offerings of UPI — one expands its usercase while the other will helps it continue to scale — have gone live.

Payments giants and fintech startups in India on Saturday requested the central bank to treat widely used prepaid payment instruments on par with bank accounts for customers who have undertaken certain verifications, days after the monetary authority signalled industry-wide crackdown. The Payments Council of India, a unit of influential industry body IAMAI, said in a \[…\]

The Reserve Bank of India has informed dozens of fintech startups that it is barring the practice of loading non-bank prepaid payment instruments (PPIs) — prepaid cards, for instance — using credit lines, in a move that has prompted panic among — and existential threat to — many fintech startups and caused some to compare the decision to China’s crackdown on financial services firm last year.