Prepaid payment card player Uni Cards on Friday said it has suspended services of its two products following the RBI directive in June, prohibiting offering credit lines to customers. The company said it has made the decision to pause onboardings in light of the RBI guideline released on June 20, 2022, that prohibited loading of prepaid payment instruments (PPIs) via credit lines.
“We have decided to proactively suspend card services on our products – the Uni Pay 1/3rd Card and the Uni Pay 1/2 Card. This process will begin in phases for our customers starting today and will be concluded by Monday, 22nd August 2020…, we are always committed to being compliant and want to be on the right side of the regulations,” Uni Cards said in a statement. The Reserve Bank had asked the non-bank prepaid payment instrument (PPI) issuers to stop providing credit lines on PPI cards and directed them to stop the practice immediately.
Asserting that Uni Cards catered to urgent needs of customers such as fee payments, medical bills and emergencies, Uni Cards said it has ensured that every one of its customers will have access to their credit line through Uni Cash. This is a product built to transfer credit lines directly to the bank account instantly, it added. “Given so many of our customers rely on their Uni Cards for everyday needs, we are extending a zero-charge partial limit on Uni Cash till 21st September 2022,” it said further.Uni Pay 1/3rd Card is the company’s subsidiary product. However, the company said it has some other innovative products in the pipeline to be launched later this month.
It allows the users to pay their monthly spending in three instalments over three months without extra charges. “Due to the latest RBI guidelines on digital lending, we are proactively suspending our card services in phases by Monday. Bearing the fact in mind that the Uni Cards 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,” Nitin Gupta, founder & CEO, Uni Cards, said. With a free partial limit enabled, the customers will not face any disruptions while using their funds, he added.