RBI Ban On Mastercard Causes Bankers To Fear Huge Disruption

This initially did not sit well with many companies, but most eventually complied. Institutions such as Visa and Mastercard are systemically important as they oversee thousands of transactions. according to the first banker. “A fine would have been more appropriate than a ban as such sudden moves create a lot of disruption not only for banks, but also for customers,” said the banker mentioned above. It would have been better if RBI had given a warning six months in advance to stakeholders. However, the central bank’s actions have come as a blessing for Visa and RuPay. Visa will probably be the sole gainer of market share in credit cards, while RuPay will strengthen its foothold in the debit card space, experts pointed out.