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Digital Lending & Fintech

Buy Now Pay Later — Charges Not Disclosed Before Purchase

You used a Buy Now Pay Later (BNPL) service but were not informed of all charges, penalties, or the APR before you made the purchase. Late payment fees or interest were charged without prior disclosure.

Applies to: All BNPL providers and fintech platformsRBI/2022-23/111 + RBI/2022-23/128

⚖️Your Rights Under RBI Regulations

BNPL providers must disclose all charges, fees, and the APR before the transaction.

Late payment charges must be disclosed prominently — hidden fee schedules are not enforceable.

You must receive a KFS before the credit is extended.

💰 What You Can Recover

Undisclosed charges are disputed and potentially refundable.

⏱ Response Deadline

30 days.

📋Step-by-Step — What to Do

1

Gather all communication from the BNPL provider before the purchase — check if charges were disclosed.

2

Write to the provider's GRO demanding justification for each charge.

3

File with RBI Ombudsman if the provider is a registered NBFC.

🏛 Where to Escalate If Bank Doesn't Respond

RBI Integrated Ombudsman + sachet.rbi.org.in

⚖️

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Governing RBI Circular
RBI/2022-23/111 + RBI/2022-23/128
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