VISA and Mastercard to Suspend Card-based Commercial Payments

On February 8, 2024, Visa Inc. acknowledged a communication from the Reserve Bank of India (RBI) to suspend its card-based commercial payments. Subsequently, it issued a message to its partners to suspend all Business Payment Service Provider (BPSP) transactions until further notice.

Although the reason behind this move by the RBI is yet to be known, it is speculated that it is due to the lapse in adherence to KYC norms. This step by the RBI follows a recent regulatory crackdown on Paytm Payments Bank for its non-adherence to KYC norms and other compliances.