PhonePe, Paytm, Cred stop credit card rent payments: Here's why
Big update: PhonePe, Paytm, and Cred have just stopped letting you pay rent with credit cards.
This comes right after the Reserve Bank of India (RBI) rolled out new rules on September 15, aiming to tighten how digital payments—especially rent—are handled.
What's the new RBI rule?
RBI now says payment aggregators can only process payments for merchants they have a direct contract with.
So, sending your rent to a landlord through these apps is out if the landlord isn't onboarded as a merchant with full KYC.
The new rules require stricter KYC checks and more oversight to keep things secure.
Back to bank transfers and cheques for now
If you were using your credit card to pay rent (and maybe rack up points), that's on hold for now.
Banks like HDFC, ICICI, and SBI had already started cutting rewards or adding fees earlier this year.
With these fintech platforms pulling the plug, most people will need to go back to old-school bank transfers or cheques until further notice.