Buy-Now-Pay-Later Regulation

Licensing and Regulating BNPL Providers

The instructions set forth herein are titled the "BNPL Regulation" for 2023, and shall enter into force as of 06 / 08 / 2023.

For the purpose of these regulations, the following terms are defined as follows, unless the context otherwise suggests.

S.No.	Term	Explanation
1	BNPL Product or Service (Also referred to as BNPL Lending or BNPL Credit)	BNPL is an abbreviation for 'Buy-Now-Pay-Later.' It is a short-term instalment based credit product provided to Customers, either online or offline, for the purchase of goods or services, wherein the Customer repays the Transaction Amount over a period of time to the lender (BNPL Provider).
2	BNPL Provider	A BNPL Provider is a lender that undertakes the credit risk of a BNPL Product or Service.
3	Creditworthiness	The method by which a lender determines the Customer's credit standing and estimate the probability that a Customer will default on their debt obligations. Furthermore, it determines whether the Customer is worthy of receiving BNPL credit.
4	Customer