Uni plans to temporarily suspend its card services in the South Asian market following the local central bank's guidelines on digital lending.
Your card won't be active for a while. We are working with our banking partners to get the card services back up and running as soon as possible. There will be no change to your billing and repayments.
Uni, which is backed by General Catalyst, Elevation Capital and Lightspeed Venture Partners, plans to suspend card services on its products and expects to change the entire customer base.
The startup said it was committed to being compliant and wanted to be on the right side of the regulations.
India's central bank is trying to tighten its lending guidelines to make it easier to lend to customers in India. The lack of clarity from the Reserve Bank of India is impacting many good startups and is affecting the lives of many customers, according to another fintechentrepreneur who isn't affiliated with Uni.
Earlier this month, Uni and a number of other startup's were told by SBM Bank India to stop new customers from signing up, according to MoneyControl.
The card services will be suspended in phases by Monday due to the latest guidelines from the Reserve Bank of India. The Uni Card is used for urgent needs like fee payments, medical bills and emergencies, and we have ensured that every customer will have access to their credit line through Uni Cash.
Customers won't face disruptions while using their funds with a free partial limit. Something we are building is really exciting. It is the first of a kind and never been done before.
India’s central bank cracks down on fintech startups
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