India, Sept. 18 -- A day after the Reserve Bank of India (RBI) issued new master directions for payment aggregators (PAs), fintech giants like PhonePe, Paytm, and CRED have reportedly halted rental payments via credit cards on their platforms.

Sources told Economic Times that the rent payments routed via credit cards were impacted, as landlords are not often onboarded on fintech platforms with full KYC. In effect, payment aggregators were acting as a marketplace for landlords without merchant KYC.

RBI's new mandates direct PAs to aggregate funds only for the merchant with whom it has a contractual relationship. Additionally, payment aggregators are also barred from carrying out "marketplace business".

"For such transactions (rental pay...