Indians’ payment landscape is changing rapidly with the latest news of India’s central bank, Reserve Bank of India (RBI), lifting the freeze on mobile payments and lending apps.
PayU’s lending platform, LazyPay, as well as some other lending apps such as LoanFace, MoneyVest, ZipLoan, HomeCredit and KrazyBee, were banned by the Reserve Bank of India earlier this year to comply with compliance requirements.
This move came as part of RBI’s move to ensure that customers are better protected from any potential scams from defaulters. These bans were imposed after it was revealed that the lending platforms were using unsecure payment gateways, which could potentially increase the risk of customer’s data being leaked.
The ban was reversed earlier this week with the central bank allowing these lending apps to resume their operations. According to RBI, the restrictions have been lifted after the non-banking finance companies complied with all regulatory requirements set by the central bank.
This move is seen as a major milestone for the digital payment sector in India as it demonstrates the resilience of the Indian e-payment industry. It also enhances the trust of customers on the various digital payment platforms.
Furthermore, it also has positive implications for the Indian fintech industry. These payment apps offer short-term loans with high interest rates, allowing borrowers to clear their debts quickly. This could be beneficial for those who may not qualify for traditional loans, or who need urgent cash.
The ban being lifted will lead to more customers for PayU’s LazyPay and other lending apps. The development will benefit both the customers and the digital payment companies as it will increase their userbase, leading to more profits.
Overall, the decision by RBI to lift the ban on PayU’s LazyPay and other lending apps is a positive one that will benefit the digital payment industry in India as a whole. It will increase the trust of customers in digital payment companies, and help expand their business.
