Mastercard RBI Card Business Payment: After the steps taken by RBI against Paytm Bank, this decision is being discussed everywhere in the industry. However, correct information has not been revealed as to why the Reserve Bank has taken this step.
Visa RBI Card Business Payment: After taking action against Paytm Payment Bank, the Reserve Bank has taken another big decision. In the RBI order, Visa and MasterCard networks have been asked to stop card-based commercial payments made by small enterprises. According to the news published in Economic Times, transactions being done at other business outlets have also been temporarily stopped. However, correct information regarding why this step was taken by the Central Bank has not been revealed.
Order to stop business payment through commercial card
It is believed that the reason behind RBI taking this step is that the regulator is worried about the transactions done by small businessmen who do not follow KYC. The founder of a fintech startup, on the condition of anonymity, said that fintechs working in this sector have been ordered to stop business payments made through commercial cards until further orders. He also said that after this step, rent and tuition payment may be affected.
Facility to pay fare also
After this, some fintechs will have to think about suspending such transactions. Actually, apps like Cred, Paytm and NoBroker provide customers the facility to pay the fare through card. Usually businesses make payments through net banking or bulk transfer from RBI like RTGS.
Except fintech and card networks which have developed the process of making payments to business vendors through cards. Card payments are not commonly used in this sector. Fintech vendors and suppliers like Enkash and Paymate provide payment facilities keeping in mind business needs like payments.
