Now home fare will not be filled with credit card: Payment apps closed after RBI’s new guidelines

If you pay your home fare from mobile apps like Phonpe, Paytm, CRED and Amazon Pay, then you will not be able to do it now. Because, the Reserve Bank of India (RBI) has implemented new rules related to payment services. Under the new rules, Fintech platforms have discontinued the rent payment service with credit cards on their apps.

Next we will learn about the new RBI rule. It will also know why the trend of rent payment through credit cards increased and why RBI implemented new rules …

First of all understand what RBI did?

answer: RBI issued a new circular for rent services. According to this, payment aggregators and payment gateways can now only transact with traders with whom they have direct contact or whose KYC has been completed. That is, landlords are not usually registered merchants, so money cannot be sent to their account through these platforms.

Why was the fare payment stopped from credit card?

answer: Earlier, some people used to transfer money from credit cards by putting names, bank details in the account of their friends or relatives in the name of rent without full KYC. The app used to transfer money immediately and you used to get a reward point or cashback, but RBI did not like this system because, the landlords were not getting the entire KYC.

Fintech companies were acting like a market place in the middle, which RBI considered illegal. Now this service has stopped and Fintech companies will have to follow strict rules. This facility has also been discontinued to prevent such misuse.

Was the banks already strict?

answer: Before the new RBI rules, bank credit cards had started strict on paying fare. In June 2024, HDFC Bank introduced an additional fee of 1% for paying the fare with a credit card, the maximum limit of ₹ 3,000. ICICI Bank and SBI cards stopped giving reward points on such payments.

SBI cards reported in 2023 that a large part of their total retail expenses (approximately mid -teens) used to pay rent, with an average of every transaction ₹ 20,000 – ₹ 21,000. After this, SBI cards increased their fees from ₹ 99 to ₹ 199 and then ₹ 200. The company also said that the increase in rent payment is slowing down compared to the rest of the retail expenses.

Which platforms stopped the service?

answer: In March 2024, Phonpe, Paytm, Mobikwik, Freecharge and Amazon Pay stopped the facility of fare payment from credit cards. After this, in September 2025, all other platforms, including CRED, also removed this facility completely due to the new RBI rules.

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Who will affect it?

answer: Now tenants will not be able to pay the fare with credit cards on Finntech apps like Phonpe, Paytm etc. They will neither get reward points nor the benefit of without interest. This will also affect banks, as experts believe that their fees may be reduced. Companies like SBI cards can also be under pressure on earnings (EPS) per share.

This is a major setback for Fintech companies, as rent payment in recent years was the fastest growing area on their platforms. Now they have to find new offers and business models.

Now what options do tenants have?

answer: Now tenants will not be able to pay rent from credit card. They have to use UPI, bank transfer (NEFT, RTGS, IMPS), check or automatic payment (standing instruments) to pay the fare. That is, the fare will have to be paid immediately, like a credit card, there will be no option of payment later. Also, the benefits of credit cards such as reward points, cashback or without interest will not be available.