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Mumbai, Feb 15: The Reserve Bank on Thursday asked card network Visa to stop making payments through intermediaries to entities which do not accept card payments, saying a large amount of funds are involved in the activity without legal sanction, according to sources. As per information available, only one card network has operationalised this arrangement
Mumbai, Feb 15: The Reserve Bank on Thursday asked card network Visa to stop making payments through intermediaries to entities which do not accept card payments, saying a large amount of funds are involved in the activity without legal sanction, according to sources. As per information available, only one card network has operationalised this arrangement
There are five card networks in India: Visa, Mastercard, RuPay, Diners Club, AmEx. The network in question has allegedly allowed businesses to make payments through intermediaries to entities that cannot accept card payments.
The Reserve Bank of India (RBI), on Thursday issued orders restraining commercial transactions routed through intermediaries by a card network. The central bank, without naming the card network, said the intermediary with an arrangement with the network, did not have the authorisation to function under the Payment and Settlement Systems (PSS) Act. This led the regulator to suspend the arrangement till further notice.
The Reserve Bank of India (RBI) has taken decisive action against a certain card network, albeit without explicitly naming it, for allegedly facilitating unauthorized payments through intermediaries. This move by the RBI underscores the critical role of regulatory oversight in maintaining the integrity and security of payment systems within the country. What is a card […] - Newsx