Indian postpaid card startup Uni has suspended its card service in the South Asian market after local central bank guidelines for digital lendingIt said in a notice to users seen by TechCrunch, in a move that will impact millions of users.
“This means your card won’t work right now. We are working with our banking partners to resume card services as soon as possible and will keep you informed. However, there will be no changes to your payments and refunds,” the $350 million startup said in the announcement.
Uni, is Backed by General Catalyst, Elevation Capital and Lightspeed Venture Partnersconfirmed in a statement to TechCrunch that it will be suspending card service across its products (Uni Pay 1/3 Card and Uni Pay 1/2 Card) and is expected to roll out the change to the entire market. customer base set on Monday.
The move follows SBM Bank India, which has partnered with several Indian fintechs to launch a co-branded card, which announced Uni and several other startups earlier this month. Pause approaching new customersMoneyControl news agency of India reported.
“Due to the latest RBI guidelines for digital lending, we will be proactively suspending our card services in phases on Monday. Bearing in mind the fact that the Uni Card is used for urgent needs such as paying fees, medical bills and emergencies, we have ensured that every one of our customers will have access to their line of credit through Uni Cash,” said fintech veteran Nitin Gupta, Uni co-founder and its chief executive officer.
“With the free partial limit activated, our customers will not experience any interruptions when using their funds. We’re building something really cool. Like always, it’s a first thing and has never been done before,” he added.
This is an evolving story. More to follow…