# Big blow to BNPL fintechs with recent RBI statement?

**URL:** https://tradingqna.com/t/big-blow-to-bnpl-fintechs-with-recent-rbi-statement/132333
**Category:** Startups & Fintech
**Created:** [June 21, 2022, 5:02am UTC](https://tradingqna.com/t/big-blow-to-bnpl-fintechs-with-recent-rbi-statement/132333 "2022-06-21T05:02:55Z")
**Posts on this page:** 1
**Showing post:** 3

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### Author: ![cvs](https://tradingqna.com/user_avatar/tradingqna.com/cvs/32/92503_2.png) [@cvs](https://tradingqna.com/u/cvs)
#### Post date: [June 21, 2022, 9:02am UTC](https://tradingqna.com/t/big-blow-to-bnpl-fintechs-with-recent-rbi-statement/132333/3 "2022-06-21T09:02:45Z")

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🥳 Great news to stop the flood of predatory / hidden loans by many NBFCs  
designed to prey on the financially unaware.

It looks like no longer can someone be unwittingly subscribed into a loan/credit-line disguised as a “freebie”.  
_( eg. [Buy Now Pay Later](https://tradingqna.com/t/is-bnpl-better-than-credit-cards/126494/5) schemes, [0% EMI payment](https://tradingqna.com/t/how-did-a-zero-interest-emi-loan-generate-a-return-of-1400-apr/127329) schemes, … )_

* * *

> [@scpulse](#):
>
> After toping up his prepaid wallet with X, A then makes a withdrawal request of 50k to his Bank account.  
> …  
> …  
> What RBI has now done is , they have put a ban on A’s money printing business.

I didn’t get the significance of this scenario. 🤔  
How is this different from opting for a personal-loan and withdrawing the amount in cash?  
Why do you think this scenario of encashing one’s credit (indirectly) must be discouraged?

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