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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.
According to the RBI, the payment intermediary was accepting card payments from corporates for their commercial payments, and then remitting the funds via IMPS/RTGS/NEFT to non-card accepting recipients
According to the RBI, the payment intermediary was accepting card payments from corporates for their commercial payments, and then remitting the funds via IMPS/RTGS/NEFT to non-card accepting recipients
RBI restrained card network which enabled businesses to make card payments through certain intermediaries to entities that do not accept card payments
Reserve Bank of India (RBI) has issued order restraining payments by companies through intermediaries to non-card accepting recipients for violation of section 4 of Payment and Settlement Systems (PSS) Act