RBI mandates rupee-only settlement of fees for certain cards

The Reserve Bank of India said on Tuesday that certain charges/charges charged by “authorized persons” on international debit cards, store value cards, among others, payable in India should be denominated and settled in rupees only.

This instruction comes on the heels of the Central Bank reaching out to a few authorized persons (foreign currency) charging certain fees/charges, payable in India on such instruments, in foreign currency.

The tools also include charge cards/smart cards or any other tool that can be used to create a financial obligation as “currency”.

The authorized persons include banks licensed to deal in foreign currencies, fully fledged money changers, etc.