According to reporting by Nasscom, Indian fintech teams should prepare their BNPL apps for RBI's digital lending rules. BNPL means buy now, pay later. In short, compliance has to be built in from day one.
For you as a user, this should mean clearer costs and safer apps. You should see plain details before you accept any pay-later offer.
Key takeaways
- Nasscom says BNPL app teams should plan for RBI's digital lending rules early.
- The lender behind a pay-later app should be a regulated entity.
- You should see the full cost of a BNPL offer before you agree.
- Small fees can make a "free" split payment cost real money.
- Check who the lender is before you use any pay-later app.
How BNPL fits RBI's digital lending rules
BNPL lets you take a product today and pay in parts later. A lender funds it. An app shows you the offer.
RBI has set rules for digital lending in India. Lenders must be regulated entities, such as banks or registered NBFCs. An NBFC is a non-bank lender. The app is only the front door. The loan itself must come from a regulated lender.
As reported by Nasscom, tech teams should design for these rules early. That covers how money moves, what the app shows and what data it collects. Fixing these later costs more time and trust.
What changes for you as a borrower
Under RBI's approach to digital lending, you should see the full cost before you agree. That means the interest rate, fees and total repayment in simple words. Money should move between your bank account and the lender. It shouldn't sit in a third party's account.
Here's a simple example. Say you buy an item for ₹12,000 and split it over three months. Assume the lender charges 24% a year and a 2% processing fee.
| Cost item | Amount |
|---|---|
| Price of the item | ₹12,000 |
| Interest for 3 months at 24% a year | about ₹484 |
| Processing fee at 2% | ₹240 |
| Total you repay | about ₹12,724 |
Your monthly EMI would be about ₹4,161, plus the fee. EMI means equated monthly instalment, your fixed monthly payment. You can test your own numbers on the EMI calculator. Clear disclosure makes this sum easy to check before you tap accept.
Who is affected
The biggest impact is on the teams that build these apps. They must check their lender partners and review their payment flows. They also need to look at how they ask for your data.
Borrowers are affected too. Shoppers who use pay-later at checkout may see more detailed screens. Some apps may ask for more consent steps. That can feel slower, but it protects you.
Smaller apps with unclear lenders may struggle most. If an app can't show who funds its loans, you should be careful.
What to do now
You don't need to change anything today. But a few habits will protect you when you use BNPL.
- Find the name of the regulated lender behind the app.
- Read the interest rate, fees and total repayment before you accept.
- Check that repayment goes to the lender's bank account.
- Share only the data the app truly needs.
- Compare with other options on our instant loan hub and interest rate tables.
For more updates like this, visit our news hub.
Frequently asked questions
Is BNPL a loan in India?
Yes. BNPL is a form of credit, even if the app calls it something softer. You owe the money and must repay it on time.
Does this Nasscom guidance change my BNPL offer today?
Not directly. It's advice for app builders. Any change you see will come as apps update their screens and lender checks.
How do I know if a pay-later app is safe?
Check that the lender is a bank or a registered NBFC. You can look it up on RBI's list. Avoid apps that hide fees or won't name the lender.
BankCreds analysis
Don't over-read this story. It's guidance for app builders, not a new rule that lands on your phone this week. Your BNPL offers won't change overnight.
Still, it points to a slow shift. Apps that treat pay-later as free money will have a harder time. Clear costs make it easier to compare.
Who gains, who doesn't
Careful buyers gain the most. Take a ₹12,000 purchase split over three months. A 2% fee adds ₹240. That's like paying extra interest on top. Seeing it upfront helps you say no.
Impulse buyers gain less. Better disclosure doesn't stop overspending. If you can't clear the amount in a month or two, skip the offer. Small pay-later dues add up fast across several apps.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Nasscom — originating report https://community.nasscom.in/communities/application/how-indian-fintech-teams-can-prepare-bnpl-app-development-rbi-digital
- RBI notifications and circulars — RBI's digital lending directions and circulars https://www.rbi.org.in/Scripts/NotificationUser.aspx
- RBI list of registered NBFCs — Check whether a lender behind an app is registered https://www.rbi.org.in/Scripts/BS_NBFCList.aspx
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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