India's RBI and FIU-IND are scrutinizing offshore crypto payment cards issued by Visa, Mastercard, and RedotPay.
Regulation & Gov ·
India's regulatory authorities—the Reserve Bank and the Financial Intelligence Unit—are examining offshore payment cards backed by stablecoins that carry Visa and Mastercard branding, as well as products from RedotPay. The scrutiny signals potential concerns about how crypto-linked payment instruments may operate outside domestic oversight frameworks while remaining accessible to Indian users.
Crypto payment cards function by converting digital assets into fiat currency at the moment of purchase, enabling cardholders to spend holdings like stablecoins at conventional merchant terminals. Monthly transaction volumes have grown substantially, with the sector expanding as stablecoin-backed products increasingly integrate with traditional payment networks. Issuers handle the conversion and settlement mechanics so merchants continue receiving standard currency.
The exact scope and timeline of the regulatory review remain unclear. It is not yet known whether the inquiry will result in restrictions, licensing requirements, or other enforcement actions, or whether it applies solely to specific products or extends to all offshore crypto card schemes accessible within India.