RBI’s new guideline has been implemented, You can no longer pay rent with a credit card! 

Credit Card Rent Payment: You will no longer be able to pay rent with your credit card . Major fintech platforms like PhonePe, Paytm, Cred, and Amazon Pay have discontinued this feature. This feature was a popular choice over the past few years because it offered convenience in rent payments and benefits like reward points and cashback. However, the RBI has now issued new rules effective September 15, 2025, which will end this feature.

According to new RBI regulations, a company that acts as a payment aggregator can only process money for merchants with whom it has direct contracts. Landlords are not included in this list, so fintech companies can no longer transfer credit card rent to landlords.

Why did this strictness come?

The RBI cited violations of KYC rules and increasing fraud as the reasons behind this decision. It has been observed that credit card rent payments often lack proper verification. Taking advantage of this, some people transferred money to the accounts of close relatives under the guise of rent and then used it for illegal purposes. Consequently, the RBI decided that such transactions could no longer be conducted without proper verification. Therefore, rent payments using credit cards have been banned.

Previously, tenants used to send money directly to their landlords using credit cards through apps like Cred, PhonePe, and Paytm. This provided them with access to cashback, reward points, and credit, making it easier to plan their monthly budget. However, starting in 2024, banks began tightening their restrictions on this facility. HDFC Bank began charging 1% in June 2024. ICICI Bank and SBI Cards stopped offering reward points on such transactions. SBI Cards also increased fees and acknowledged that rent payment growth was slowing.

All apps have stopped this feature

Some fintech platforms discontinued the facility for rent payments using credit cards in March 2024. Now, following new RBI regulations, other fintech companies, including Cred, have completely discontinued this feature in September 2025. The option to pay rent using credit cards will no longer be available.