RBI has asked payment networks Visa and Mastercard to stop facilitating business credit card issues by fintech aggregators. Find out more about RBI's concerns and the impact on the credit card business.
In this edition of Moneycontrol Pro Panorama: Indian pharma market on a new high, M&M’s performs better int he latest quarter, unaccounted political funding needs more clarity, and more
Fintech startup Fi, for instance, reduced the foreign currency transaction fee for its Amplifi credit card from 1 per cent to 0 per cent in December, matching the zero forex markup feature already available on its debit card.
Businesses typically pay their vendors by bank transfers or commercial credit cards called Business Payment Service Provider (BPSP) transactions, which are now suspended by RBI
This comes on the back of a recent instruction from the RBI asking these companies to halt usage of these payment instruments for business payments made to vendors, suppliers and other such entities. Following this directive, card networks have informed payment companies to stop these services to their clients.