An Indian-based FinTech Firm, Uni has announced the suspension of card services on its products.
This, according to Uni, is based on the recent guideline drafted by the Reserve Bank of India (RBI) on digital lending.
The recent guideline on digital lending which according to the RBI aims to provide a framework that better safeguards the interest of customers state that only entities which are permitted by the Central Bank can provide lending services to customers.
According to Uni, the suspension of its card services affects its Uni Pay 1/3rd Card and the Uni Pay 1/2 Card.
“Bearing the fact in mind that the Uni Card is used for urgent needs like fee payments, medical bills, and emergencies, we have ensured that every one of our customers will have access to their credit line through Uni Cash,” said Nitin Gupta, Founder, and CEO, Uni Cards.
“This process will begin in phases for our customers starting today and will be concluded by Monday, August 22. While it is a decision taken with a heavy heart, we are always committed to being compliant and want to be on the right side of the regulations,” Uni said in a statement.
The firm added that with its free partial limit enabled, customers will not face any disruptions in accessing their funds.