With the RBI cracking down on credit facilities provided by non-bank prepaid payment instrument issuers, industry players are seeking a reprieve through a sunset clause of at least a year, industry sources said on Friday.

Earlier this week, the RBI directed the non-bank prepaid payment instrument (PPI) issuers to stop providing credit lines on such PPI cards and asked them to stop the practice immediately. Industry associations such as the Digital Lenders Association of India (DLAI), Fintech Association for Consumer Empowerment (FACE) and others fear that their customer base would be affected by the RBI directive.

“So they want to have some sort of grandfather or sunset clause. They are of the view that they should at least be given a year to allow the transition, or that they can evolve into the credit business. They want the finance ministry and the RBI to allow them a little bit of a sunset clause,” another source said.

Sunset clauses are specific provisions in laws and they expire after a set timeline.

More payment options

Sebi on Friday provided an additional payment option of unified payments interface mechanism to retail investors to apply in the public issue of REITs and InvITs for application value of up to Rs 5 lakh.

The new framework, aimed at further streamlining the process, will be applicable to public issue of units of Infrastructure Investment Trust and real estate investment trust, which opens from August 1, the Securities and Exchange Board of India (Sebi) said in two separate circulars.

Tokenisation deadline

The RBI on Friday extended the card-on-file tokenisation deadline by three months to September 30, given various representations received from industry bodies. Card-on-file, or CoF, refers to card information stored by payment gateways and merchants to process future transactions.