Visa halts intermediated commercial card payments in India after regulatory order

VISA mentioned on Wednesday (Feb 14) that the Reserve Bank of India (RBI), which can be the nation’s monetary market regulator, had directed it final week to halt all home transactions for enterprise fee resolution suppliers (BPSPs).

BPSPs facilitate business-to-business card funds made to non-card-accepting distributors or suppliers. The RBI’s directive won’t impression all industrial card funds, however solely these intermediated by BPSPs.

Visa, the world’s largest funds processor, didn’t say why the RBI has issued the directive. The central financial institution didn’t instantly reply to a Reuters request for remark.

“Visa received a communication from the RBI on Feb 8, in what appears to be an industry-wide request for information on the role of business payment solution providers (BPSPs) in commercial and business payments,” a Visa India spokesperson mentioned.

The spokesperson mentioned the corporate was in discussions with the RBI and its companions to make sure compliance.

Indian fintech agency Enkash, which works in partnership with Visa to facilitate such transactions, declined to touch upon the event.

Earlier within the day, Indian enterprise each day Economic Times reported that the RBI requested main card networks, together with Visa and Mastercard, to halt such card funds.

Mastercard, too, didn’t reply to a request for a remark. REUTERS