India, April 22 -- The Reserve Bank of India (RBI) has directed all regulated payment companies to monitor high-value or suspicious transactions during the Lok Sabha elections, which commenced on April 19.

In a letter, dated April 15, the central bank has asked payment system operators (PSOs) to take measures to prevent potential misuse of electronic fund transfer mechanisms for influencing voters or indirectly financing political candidates, ET reported.

"The regulator wants payment companies to track high-value merchant payments specifically. Also recurring person-to-person payments can be brought under scrutiny," a fintech executive said as quoted in the report.

Fintech firms like Razorpay, Cashfree, CCAvenue, and Mswipe operate as ...