to be vigilant in identifying and rejecting suspicious transactions to avoid potential losses.
Impact on Customers
This order will also have an impact on customers who fall under the high-risk category. They will not be able to use their cards on the Visa and Mastercard networks for any transactions, which could inconvenience them. This may also affect their credit scores and ability to access financial services in the future.
Conclusion
The RBI’s decision to restrict card-based payments by high-risk customers is a step towards enhancing the safety and security of financial transactions in India. While it may inconvenience some customers and businesses, it is a necessary measure to protect against potential risks and ensure the integrity of the payment ecosystem.
In recent news, the Reserve Bank of India (RBI) has issued an order aimed at improving the security of financial transactions in India. The order restricts card-based payments by high-risk customers on Visa and Mastercard payment networks.High-risk customers are individuals or entities with a higher likelihood of engaging in fraudulent activities or illegal transactions. This includes those with a history of financial fraud, money laundering, or other criminal activities. The RBI’s decision is based on these individuals’ potential risks to the overall payment ecosystem.This order has a significant impact on banks as they are now required to identify and block high-risk users from using their cards on Visa and Mastercard networks. This not only requires additional resources