The RBI has asked Visa and Mastercard to stop card-based B2B payments such as rents or money transfer to vendors routed through third party fintech firms, according to the sources.
Source: RBI
The central bank has not specified why they have placed these restrictions, the sources said.
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The impact would only be on commercial payments routed through third parties and not on all corporate card payments, the sources added.
Source: shutterstock
A set of fintech firms operate in a category called 'business payment solution providers,' which facilitate payments to merchants that do not otherwise accept card payments in return for a fee.
Source: Freepik
Only a small set of payments, which were routed via fintech firms, will be impacted, said the sources.
Source: Pexels
The central bank has for now asked Visa and Mastercard to suspend such transactions, the sources said.
Source: Reuters Breakingviews
Regular payments made to businesses via corporate cards will not be impacted.