UPSC Practice recommends Gentle watch over prepaid instruments.
RBI’s concern over new-age companies assuming a lender’s role without building sufficient safeguards is not entirely misplaced. An unsecured business can boomerang if not managed properly. Its April master direction on credit and debit cards, that includes NBFCs as card issuers, has set a ₹100 crore net worth requirement for finance companies to issue cards with a prior nod from RBI to enter the card business.
Courtesy: ET Editorial-Opinion-Economic Times