VISA-Master Card: After Paytm, Visa and MasterCard were attacked, RBI banned such card payments.
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RBI on VISA and Master Card: Reserve Bank of India has given a big blow to foreign payment merchants like Visa and MasterCard. The apex bank has strictly banned stopping business payments from their cards. It is being told that after the bank’s action, officials of both the payment merchants have met RBI officials. Top officials of both the payment companies have wanted to know from RBI which business model the payment merchants have to follow in corporate card-to-business account money transfer.
Visa and MasterCard have a major share in card payments.
Let us tell you that Visa and MasterCard have a greater share in card payments than other activities. In such a situation, it is understood that there may be an impact in the market. He was given notice by the Reserve Bank on February 8. In the notice, instructions have been given to suspend all transactions of Business Payment Solution Providers (BPSP) till further orders from the bank.
Why did the Reserve Bank take big action?
Clear information has not been received about the reason behind this big action by the Reserve Bank. However, according to media reports, the Reserve Bank has found that payments were being made from the cards of both the companies to such merchants who do not have KYC. RBI also suspects fraud and money laundering in some big transactions. Let us tell you that due to similar allegations, action has been taken by the bank on Paytm also. Paytm Bank transactions have been stopped from March 1. At present the UPI payment platform is facing investigation by ED.
How does the company issue the card?
Such cards are issued by banks to big corporate customers. Normally this card is not issued to general customers. It is issued to corporate houses under the credit line received from banks. Big companies make payments to small companies through this card. At present RBI has stopped the payments of Visa and MasterCard on suspicion of money laundering.
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