Question
Why did the Reserve Bank of India (RBI) direct Visa and
Mastercard to halt card-based commercial transactions?Solution
•   The Reserve Bank has directed Visa and Mastercard, two major players in international payments, to halt card-based commercial transactions made by small and large businesses. •   This action stems from concerns regarding compliance with Know Your Customer (KYC) regulations. •   Visa has confirmed receipt of communication from the regulator on February 8, while awaiting a response from Mastercard. •   This move follows the RBI's recent regulatory measures against Paytm Payments Bank. •   Some fintechs have also received the RBI direction to pause business payments made by commercial cards until further notice. Learn Along About RBI Founded: 1 April 1935                      Headquarters: Mumbai            Governor: Shaktikanta Das
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