Banking services are on the verge of becoming more expensive as the Financial Action Task Force (FATF) is considering implementing strict disclosure norms for credit card transactions.
This move aims to combat money laundering and terror financing. The FATF has been working on enhancing disclosures for credit card and online transactions to improve payment transparency.
According to sources, the Finance Ministry is set to introduce stricter monitoring of international and online credit card transactions. This decision may lead to increased costs for banking services, which could be passed on to customers.
Experts predict that the new norms will increase operational costs for banks, which will likely be reflected in the form of higher charges for customers. The increased costs could be in the form of higher annual fees, increased transaction fees, or higher interest rates.
On the other hand, the move is expected to improve India's standing on the global stage when it comes to combating money laundering and terror financing. India has been pushing for FATF transparency in cross-border payments and this decision is expected to boost the country's efforts.
The FATF is expected to meet with Indian private sector stakeholders in April 2025 to discuss payment transparency issues. This meeting is expected to provide stakeholders with a clearer understanding of the new norms and the expected timeline for implementation.
While the move is expected to have a positive impact on India's global standing, it is also expected to have a significant impact on the banking industry. Banks will need to upgrade their systems to meet the new disclosure norms, which could be a time-consuming and costly process.
Customers will need to be prepared for the increased costs and stricter regulations that are expected to be implemented in the coming months. It is essential for customers to stay informed about the changes and to review their banking services to ensure they are getting the best value for their money.
As the banking industry prepares for the new norms, it is essential to strike a balance between improving payment transparency and keeping costs affordable for customers. Only time will tell how the new norms will impact the banking industry and customers.