The Reserve Bank of India (RBI) has directed Visa and Mastercard to temporarily stop issuing new cards for certain fintech companies involved in business-to-business (B2B) payments. This move comes as part of the RBI’s efforts to ensure the stability and security of the country’s financial system.

The RBI’s decision is aimed at addressing concerns over potential risks associated with B2B fintech payments, including issues related to data security, fraud prevention, and regulatory compliance. The central bank has asked Visa and Mastercard to halt the issuance of new cards for these fintech companies until further notice.

While this directive may cause some disruption in the B2B fintech sector, the RBI’s primary concern is to safeguard the interests of consumers and the overall stability of the financial system. The central bank has stated that it will work closely with Visa and Mastercard to address any issues and ensure compliance with regulatory requirements.

It is important for fintech companies to adhere to the guidelines and regulations set forth by the RBI in order to maintain trust and confidence in the financial system. By working closely with regulators and implementing robust security measures, fintech companies can help ensure the safety and security of B2B payments in India.

Overall, the RBI’s decision to ask Visa and Mastercard to halt B2B fintech payments is a proactive measure aimed at addressing potential risks and ensuring the stability of the financial system. By taking appropriate steps to address these concerns, fintech companies can help build a more secure and reliable payments ecosystem in India.