RBI Credit Card New guidelines 2025: If you also live in a rented house, then this news is useful for you.
If you pay your house rent using mobile apps like PhonePe, Paytm, Cred, and Amazon Pay, you won’t be able to do so anymore, as the Reserve Bank of India (RBI) has implemented new rules related to payment services.
As per the new rules, fintech platforms have stopped the credit card rental payment service on their apps.
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RBI Credit Card New Guidelines 2025 Circular
The RBI has issued a new circular regarding rent services. According to this, payment aggregators and payment gateways can now only process transactions with merchants with whom they have direct contact or whose KYC has been completed.
This means that landlords are usually not registered merchants, so money cannot be transferred to their accounts via credit card through these platforms.
Why has rent payment through credit card been stopped?
Earlier, some people used to transfer money through a credit card to the accounts of their friends or relatives in the name of rent without complete KYC by entering their name and bank details. The app would transfer the money instantly, and you would get reward points or cashback, but the RBI did not like this system because the complete KYC of the landlords was not being done.
Fintech companies were acting as middlemen, a marketplace, which the RBI deemed illegal. This service has now been discontinued, and fintech companies will have to adhere to strict regulations. This feature has also been discontinued to prevent such misuse.
Strictness was happening even beforeEven before the RBI’s new regulations, banks had begun tightening restrictions on credit card rental payments.
- In June 2024, HDFC Bank introduced a 1% additional fee for credit card rental payments, up to a maximum of ₹3,000.
- ICICI Bank and SBI Cards stopped offering reward points on such payments.
RBI Credit Card New Guidelines 2025: Which Platforms Stopped Service?
PhonePe, Paytm, Mobikwik, Freecharge, and Amazon Pay discontinued the facility of paying rent using credit cards in March 2024. Subsequently, in September 2025, all other platforms, including Cred, also removed this feature completely due to new RBI regulations.
RBI Credit Card New Guidelines 2025: What Options Do Tenants Have Now?
Tenants will no longer be able to pay rent using credit cards. They will be required to pay rent using UPI, bank transfer (including NEFT, RTGS, and IMPS), check, or automatic payment (standing instructions). This means rent must be paid immediately.
There will be no Pay Later option like with a credit card. You won’t be able to enjoy credit card benefits, such as reward points, cash back, or a no-interest period.
This is a major blow to fintech companies, as rent payments have been the fastest-growing segment on their platforms in recent years. They will now have to find new offerings and business models.
RBI’s new guidelines end credit card rent payments on PhonePe, Paytm, and CRED from Sept 15, 2025—time to switch to NEFT, RTGS or UPI! #RBI #RentPayment #CreditCardBan #PhonePe #Paytm #CRED pic.twitter.com/P8nkVPtFTa
— Hook (@hookonline_) September 22, 2025
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗