How RBI's latest steps have affected India's fintech firms
What's the story
The Reserve Bank of India (RBI) has announced a series of regulatory changes that could significantly impact the country's fintech ecosystem. The move comes as part of the central bank's efforts to tighten its grip on digital payment platforms and services. The changes are affecting several sectors, including payments, wallets, cards, and even lending.
Major impact
Paytm Payments Bank license canceled
In a major blow to Paytm's payments ecosystem, the RBI has canceled the license of Paytm Payments Bank. The move was triggered by compliance and governance lapses at PPBL. The central bank will now initiate winding up proceedings against the bank. However, Paytm has assured that this development will not have any material impact on its core business or services.
New regulation
UPI, IMPS transfers above ₹10,000 could be delayed
To tackle the rising cases of fraud, the RBI has proposed a one-hour delay for UPI and IMPS transfers above ₹10,000. The new rule introduces a cooling-off period and beneficiary whitelisting. This could create friction for platforms such as PhonePe, Google Pay, as well as Paytm in high-value peer-to-peer transactions.
Compliance norms
Stricter compliance norms for wallet players
The RBI has issued draft guidelines for prepaid payment instruments, introducing stricter compliance norms and transaction caps. These include a monthly cap of ₹2 lakh and a peer-to-peer transfer limit of ₹25,000. The new rules are likely to directly impact wallet players in India such as Mobikwik, Paytm, and Amazon Pay.
Transaction rules
Changes in e-mandate framework
The RBI's updated e-mandate framework for recurring payments brings stricter rules around additional factor authentication for higher-value transactions. It also enhances pre-debit notifications. The changes directly impact platforms like Razorpay and Cashfree Payments that heavily rely on subscriptions and autopay services, as well as merchants in sectors like OTT, mutual funds SIPs, insurance premiums, and SaaS billing.
Lending impact
Gold loan regulations disrupt doorstep models
The RBI's stricter norms for gold loans, which require regulated entities to handle gold custody, are disrupting fintech-led doorstep models. Start-ups such as Rupeek, Indiagold, and Oro are reportedly shifting from distribution to building their own loan books and exploring co-lending. This comes as the segment slows down amid stronger competition from incumbents like Muthoot Finance and Manappuram Finance.
Ongoing review
Co-branded credit card issuance under review
The RBI is still examining co-branded credit card models. OneCard is under review, with issuance halted since December 2025. According to Entrackr, the central bank has appointed an audit firm to examine its partnership and data-sharing framework. Partner banks are also awaiting clarity on when onboarding will resume, indicating tighter oversight of fintech-bank collaborations.