Merchant Acquisition for Card transactions - RBI - Reserve Bank of India
Merchant Acquisition for Card transactions
RBI/2015-2016/410 May 26, 2016 The Chairman and Managing Director / Chief Executive Officers Madam / Sir, Merchant Acquisition for Card transactions Please refer to our circular RBI/2011-12/194.DPSS.PD.CO No 513/02.14.003/2011-2012 dated September 22, 2011 wherein various measures were prescribed for strengthening the payment infrastructure and future proofing the system. Para 4(a) (2) of the circular required action to be taken by banks in respect of strengthening the merchant sourcing and monitoring process. 2. In order to encourage banks to expand card acceptance infrastructure to a wider segment of merchants across all geographical locations and considering the experience gained by the banks in merchant acquiring business, banks are advised that they may put in place their own Board approved policy on merchant acquisition. The above instructions will come into effect from the date of issue of this circular. 3. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007). Yours faithfully (Nanda S. Dave) |