CRED, PhonePe, Paytm Suspend Credit Card Rent Payments Amid RBI Rule Changes

In a significant update for credit card users, CRED, PhonePe, and Paytm have temporarily suspended credit card rent payment services following new guidelines from the Reserve Bank of India (RBI). The RBI’s recent directives are aimed at tightening controls over recurring payments and third-party facilitation of credit card transactions. What This Means for Users Customers can no longer use CRED, PhonePe, or Paytm to pay credit card bills on behalf of landlords, service providers, or third parties. Users will need to explore alternative payment methods, such as net banking, direct card payments, or bank-provided UPI options. The suspension is temporary, with fintech firms updating their platforms to comply with RBI regulations. Why RBI Took Action The RBI aims to increase transparency, minimize risks of misuse, and ensure safer credit card usage. By enforcing stricter rules on recurring payments and third-party facilitation, the central bank hopes to protect consumers and maintain financial stability in the digital payments ecosystem. For now, credit card users are advised to make payments directly to banks and avoid relying on third-party platforms for recurring credit card rent payments. Fintech platforms are expected to resume services once they align with the new regulatory framework.