RBI mandates rupee-only settlement of fees for certain cards

BL Mumbai Bureau Updated - May 09, 2023 at 10:44 PM.

The directive comes after the RBI found some authorised persons levying fees/charges in foreign currency on such instruments.

The Reserve Bank of India on Tuesday said certain fees/ charges levied by ‘Authorised Persons’ on International Debit Cards, Store Value Cards, among others, and payable in India have to be denominated and settled in Rupees only.

This instruction comes in the wake of the central bank coming across a few Authorised Persons (in foreign exchange) levying certain fees/charges, payable in India on such instruments, in foreign currency.

The instruments also include Charge Cards/Smart Cards or any other instrument that can be used to create a financial liability as ‘currency’.

Authorised Persons include banks authorised to deal in foreign exchange, full-fledged money changers, etc.

Published on May 9, 2023 17:12

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