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RBI says under an arrangement, an intermediary accepts card payments from corporates for their commercial payments and then remits the funds via IMPS/RTGS/NEFT to non-card accepting recipients
The regulator said only one card network has operationalised this arrangement in the country so far.
On Wednesday it was reported that RBI had directed global payment giants Visa and Mastercard to suspend card-based commercial transactions by both small and large businesses due to mounting apprehensions over Know Your Customer (KYC) compliance.
The Reserve Bank, on Thursday, asked card network Visa to stop making payments
Expressing concerns over a payment intermediary operated by a card network, Reserve Bank of India (RBI) has asked the card network to keep all such arrangements under abeyance till further orders. RBI has not named the card network.