RBI took action on Visa-Mastercard network, banned such card payments
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RBI has banned a card network on Thursday. These card networks enabled businesses to make card payments to entities that did not take card payments through certain intermediaries. This activity was without legal sanction. The central bank, however, did not name the card networks or intermediaries.
The Reserve Bank of India i.e. RBI has banned a card network on Thursday. These card networks enabled businesses to make card payments to entities that did not take card payments through certain intermediaries. This activity was without legal sanction. The central bank, however, did not name the card networks or intermediaries.
As per available information, RBI said that so far only one card network in the country has implemented this system. The central bank said that, since the matter is under detailed investigation, the card networks have been advised to keep all such arrangements in abeyance till further orders. RBI said it has come to its notice that there is an arrangement in a card network that enables businesses to make card payments through certain intermediaries to entities that do not accept card payments.
The central bank said that, under this arrangement, the intermediary accepts card payments from companies for their corporate payments and then sends the funds through IMPS/RTGS/NEFT to non-card accepting recipients.
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