An unnamed card network has been directed to keep in abeyance all card-based business payments made via certain intermediaries to entities that do not accept card payments
Under the radar are business payments solutions providers or intermediaries that accept card payments for business payments and then remit the funds via IMPS/RTGS/NEFT to non-card accepting recipients
RBI has said that approval was not sought for such transactions from relevant authorities, thereby rendering the entire payment activity without legal sanction
Just a day after reports about the Reserve Bank of India (RBI) directing card networks Visa and Mastercard to halt commercial card-based business payments, the central bank has issued a new diktat.
In a circular dated February 15, the RBI has directed an unnamed card network to keep in abeyance all card-based business payments made via payments intermediaries to entities that do not accept card payments.