Crypto cards enter RBI's radar
A new fintech trend has caught the attention of India's central bank and anti-money laundering regulators - crypto cards. Although prohibited in India, these pre-paid cards are being used by tech-savvy individuals to make online purchases, recharge mobile phones, and book flights. Accessible through international fintech platforms like RedotPay, these cards are supported by global payment networks such as Visa and Mastercard.
The cards, which cost between $40 and $50, have high daily transaction limits and a three-year validity period. However, unlike traditional debit cards, crypto card transactions may go unnoticed by Indian banks, regulators, and tax authorities. The Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU) are investigating the matter, and several Indian residents' access to pre-paid crypto cards and related websites has been blocked.
The RBI and FIU are reportedly in contact with Visa and Mastercard to address the issue, but no confirmation has been provided. While crypto cards may appear harmless, they raise concerns about potential violations of India's Foreign Exchange Management Act (FEMA) and other regulations.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
