Archive · 18 Sep 2025
Fintech Apps Halt Credit Card Rent Payments After RBI Rules
Fintech apps like PhonePe and Paytm that let you pay rent with a credit card are changing.
The RBI (India's central bank) made new rules.
Now, these apps can't handle rent payments with credit cards unless landlords register as merchants with full KYC.
This means you might not get rewards or interest-free credit.
Banks had already started charging fees or removing rewards for these payments before the new rules.
PhonePe, Paytm, and Cred have stopped credit card rent payments.
The RBI issued a new circular on September 15, restricting payment processing.
This impacts the way users make digital payments for rent.
The move follows the popularity of reward points and interest-free credit for rent payments.
Banks such as HDFC Bank, ICICI and SBI Cards previously changed their terms on credit card rent payments.
- Who
- PhonePe, Paytm, Cred, RBI, Landlords
- What
- Fintechs stopped processing rent payments via credit cards
- When
- Following RBI's new circular issued on September 15
- Where
- India
- Why
- To comply with RBI's stricter guidelines for payment aggregators and gateways
Tenants
RBI
Benefits
Tenants
Tenants lose rewards and interest-free credit options.
RBI
The RBI seeks to ensure financial regulation.
- Affected Platforms
- PhonePe, Paytm, Cred, Mobikwik, Freecharge, Amazon Pay
- RBI Directive Date
- September 15, 2024
- Bank Fee Implemented
- HDFC Bank introduced a 1% fee on rent payments via fintech apps
- Banks' Actions
- ICICI Bank and SBI Cards discontinued reward points for rent payments
- RBI Aim
- To make rules for payment aggregators and payment gateways more stringent
Sources
Explainer: What RBI’s final directions mean for payment aggregators, users
PhonePe, Paytm & CRED Halt Rent Payments Via Credit Cards
No More Rent Payments Via PhonePe Or Paytm – Tenants Hit By RBI Rule Change
No rent payments through PhonePe, Paytm, Cred amid RBI curbs
