© Reuters. Visa credit score and debit playing cards are seen on this image illustration taken August 2, 2022. REUTERS/Benoit Tessier/File Photograph
BENGALURU (Reuters) -Visa mentioned on Wednesday that the Reserve Financial institution of India, which can be the nation’s monetary market regulator, had directed it final week to halt all home transactions for enterprise cost answer suppliers (BPSPs).
BPSPs facilitate business-to-business card funds made to non-card-accepting distributors or suppliers. The RBI’s directive is not going to influence all industrial card funds however solely these intermediated by BPSPs.
Visa (NYSE:), 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 obtained a communication from the RBI on February 8, in what seems to be an industry-wide request for data on the position of enterprise cost answer suppliers (BPSPs) in industrial and enterprise funds,” 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 improvement.
Earlier within the day, Indian enterprise each day Financial Instances reported that the RBI requested main card networks, together with Visa and Mastercard (NYSE:), to halt such card funds.
Mastercard, too, didn’t reply to a request for a remark.