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Credit Card Money rotation, TATA BYE BYE!

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Rajrox

https://www.thehindubusinessline.com/money-and-...

RBI cracking down on P2P credit card transactions

Central bank targeting rent and tuition fee transactions


After barring Visa from undertaking certain commercial business-to-business (B2B) credit card transactions, the Reserve Bank of India is now seen cracking down on peer-to-peer (P2P) credit card payments made via third-party service providers, sources told businessline.


This comes after the central bank has found instances of retail customers using credit cards to pay rent and tuition fees through third party apps.


These third-party players, usually fintechs, allow customers to make a credit card payment to their authorised merchant account. They then instantaneously transfer the money to the bank account of the recipient (for instance a landlord in case of rent payments) in exchange for a commission.


“Credit card transactions are only meant to be between merchants and customers (P2M). If funds are being routed through an escrow account operated by a third party, it is bypassing the regulations and will not be allowed,” a senior official said.

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Deal Cadet Deal Cadet
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Which means, RBI should ask Banks to provide cashback to all merchants..like say Axis excluded Jewellery/Govt. Transactions/Education..

These are all merchants too but they excluded from cashback.. Probably one sided decision.

Deal Subedar Deal Subedar
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A lot of people will hate me for this but let's be honest,

16 year old kids rotating their dad's money using credit cards and then getting IT notices.

Unemployed folks rotating money and then getting into debt traps.

Students showing off ultra-premium cc's without any salary.


All of this can harm the people - their finances, credit profile and CIBIL score in the long run even though they might be angry right now, it is for their benefit. 

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Deal Lieutenant Deal Lieutenant
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Fixing at loops.

Helpful Helpful
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“Credit card transactions are only meant to be between merchants and customers (P2M). If funds are being routed through an escrow account operated by a third party, it is bypassing the regulations and will not be allowed,” a senior official said.

Pro DealBaba Pro DealBaba
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- @abhishek012 what is this flushed

Finance Ninja Finance Ninja
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Yeh toh hona he tha. Ek na ek din.
Deal Cadet Deal Cadet
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abhi maja aayega na bhidu
Benevolent Benevolent
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bhai rbi ko kya dikkat he logo rent ho ya tutuion fee credit card se pay kar rhey hain to.

Pro Community Angel Pro Community Angel
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Users se koi dikkat nahi hai rbi ko, but ye payment transfer jaisa hojata hai bhai, uske liye alag license lena hota hai, cred wagera ke paas alag license hai, to ye violation hojata hai. 
Pro Shopping Friend Pro Shopping Friend
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RBI be like :-

Deal Lieutenant Deal Lieutenant
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Na khaunga Na khane doonga

Deal Cadet Deal Cadet
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Na khilane doonga😂😂😂😂😂😂

Deal Cadet Deal Cadet
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Which means, RBI should ask Banks to provide cashback to all merchants..like say Axis excluded Jewellery/Govt. Transactions/Education..

These are all merchants too but they excluded from cashback.. Probably one sided decision.

Helpful Helpful
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Sole discretion of bank😈

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Deal Captain Deal Captain
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Albele Tange Wale..........

Deal Newbie Deal Newbie
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Time for action!

Generous Generous
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neutral_face

Critic Critic
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Hey @rajrox , kindly share contents inside article as well and your take/opinion. You're not a news reporter of Desidime or notice board poster. You're a dimer.

Deal Cadet Deal Cadet
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Contents - Shared

Opinion - Never used cc for any such thing so no opinion. 

Deal Subedar Deal Subedar
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A lot of people will hate me for this but let's be honest,

16 year old kids rotating their dad's money using credit cards and then getting IT notices.

Unemployed folks rotating money and then getting into debt traps.

Students showing off ultra-premium cc's without any salary.


All of this can harm the people - their finances, credit profile and CIBIL score in the long run even though they might be angry right now, it is for their benefit. 

Deal Cadet Deal Cadet
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Can't agree more.

Here at my place lot of working staff ( 10-12k salary )  getting cc easily and transferring the same to bank accounts or aiyashi and then running here and there for EMI then borrowing for that EMI and so on.

Its happening quite at a significant scale.

So the move is definitely much needed.

Generous Generous
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SnaPay crying in the corner, left the chat

Finance Mentor Finance Mentor
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Only defaulters cry in the corner...
Wingman Wingman
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I tried it 2-3 times when it worked with an AU card - 5% CB + 5x Reward points were worth it somehow but then, thought of ITR and stopped 😝

Good decision on my end at the right time. It's not good in financial sense. 

Deal Cadet Deal Cadet
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Good move. It will provide better experience for people who use it for actual spends and also for the CC industry in the long run.

Generous Generous
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wheneevr there is RBI is in news we know it is for some bad news, 

Vanguard Vanguard
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What about insurance premium payments being excluded from reward points?? Why RBI is silent on it?? Is it not violation?? This transaction is also between a merchant and buyer..

Deal Cadet Deal Cadet
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So you want RBI to direct banks to give you Money at 0 intrest for 45 days and also give you rewards and cashback as you are doing great favour on Respective bank by borrowing money from that.

Its the banks complete authority to give 100 % or 0% cashback on any transaction.  You can't force that.

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Deal Subedar Deal Subedar
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So glad to hear this.

Now make getting credit cards stricter.

Deal Newbie Deal Newbie
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Whats the point as banks getting their money paid and user pay their money

Patron Patron
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RBI should not do this. We need more and more financially broke people So others can enjoy perks of being financially aware sunglasses

Generous Generous
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Headline sahi hai kya? Ho to raha.. kab se band ho raha .. rolleyes

Benevolent Benevolent
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landlords are technically also "merchants". 

Deal Subedar Deal Subedar
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Then ask landlords to get business BANK account using GST, they i agree for your argument or else no

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