New Delhi, Aug 19 : Fintech startup Uni on Friday announced it had stopped card services on its products in accordance with the recent announcement from the Reserve Bank of India (RBI) concerning digital lending.
The company has stated that it is currently suspending its services Uni Pay 1/3rd Card as well as the Uni Pay 1/2 Card which will affect millions of users.
“This process will be implemented in stages for our customers beginning today and will be completed on Monday the 22nd of August.While this is a decision made with an aching heart, we remain committed to compliance and we want to remain in the good side of the rules,” the startup said in an announcement.
Investors such as General Catalyst, Elevation Capital and Lightspeed Venture Partners are backing Uni Cards.
“Bearing the reality in mind that the Uni Card is used for urgent needs such as medical bills, fee payment and emergency situations, we have made sure that each of our customers can access their credit line via Uni Cash,” said Nitin Gupta, founder and CEO of Uni Cards.
With the free partial limit that is enabled, “our customers will not experience any issues while spending their funds” he added.
The recent guidelines for digital lending aim at creating a solid framework to protect the customer interest of customers.
The framework is built on the premise that lending can only be conducted by those who are controlled by the central bank, or are authorized to conduct it under or other laws.
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