Is the CRED App Approved by RBI?

As of August 2023, the CRED app had not received specific approval from the Reserve Bank of India (RBI) as a payment service or financial institution. However, CRED operates as a platform that rewards users for paying their credit card bills on time and offers various financial products. It's important to check the latest updates directly from credible sources or the RBI's official announcements as regulatory approvals and statuses can change over time.

Role of NPCI in CRED

Before delving into the nuances, it's worth noting that CRED is operated by NPCI (National Payments Corporation of India), which is itself approved by the RBI. This connection forms the basis of the regulatory framework that CRED operates under.

Registration and Verification Process

Upon your first registration for CRED membership, the app will verify your credit score and credentials from the RBI. This verification process, which involves the involvement of the RBI, indicates that CRED is eventually an RBI-approved application. Through this partnership with NPCI and the use of BHIM UPI, users can make online payments for their registered Mastercard bills.

Intermediary Role of CRED

No, the CRED app itself is not directly approved by the RBI as a standalone financial service. However, the businesses it operates do not necessarily require approval from the RBI. CRED is an intermediary that enables payments for credit cards, rent, or helps users obtain lines of credit. In each of these lines of business, CRED partners with other service providers, acting as a facilitator with sleek, user-friendly features.

Conclusion

In summary, while CRED does not hold a direct approval from the RBI, it operates under the regulatory umbrella of NPCI, which is approved by the RBI. The verification and registration processes ensure that CRED complies with the necessary regulations. Users should stay informed through official channels for any updates or changes in regulations.

For users considering utilizing the CRED app, it's crucial to understand the following key points:

CRED is not directly approved by RBI but operates under NPCI's approval. The app verifies user credentials through the RBI during registration. CRED acts as an intermediary, facilitating payments and credit lines for various services. Regulatory statuses can change, and users should stay informed through official channels.

By understanding the regulatory landscape, users can make informed decisions about using the CRED app for their financial needs.