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Mastercard Restricted from Onboarding New Customers from 22 July: RBI

Mastercard was found to be non-compliant with the 'directions on storage of payment system data', the RBI said

Updated
Business
1 min read
<div class="paragraphs"><p>Mastercard was found to be non-compliant with the 'directions on storage of payment system data', the RBI said. Image used for representational purposes.&nbsp;</p></div>
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The Reserve Bank of India (RBI) has put curbs on Mastercard Asia-Pacific from onboarding any new domestic customers onto its card network (debit, credit or prepaid), with effect from 22 July 2021.

According to a statement by the central bank, the curbs were imposed as the financial services company was found non-compliant with the 'directions on storage of payment system data', despite being given considerable time and opportunity.

Clarifying that the order would not affect existing Mastercard card customers, the RBI directed the firm to advise all-card issuing banks and non-banks to follow the order.

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Mastercard is an American multinational financial services corporation authorised as a payment system operator to operate the card network in the country under the Payment and Settlement Systems Act, 2007.

The RBI on 6 April 2018, in its circular stated that, all system providers were directed to ensure that within a period of six months, the entire data relating to payment systems operated by them is stored in a system only in India, news agency IANS reported.

They were also required to report compliance to the RBI and submit a board-approved system audit report conducted by a CERT-In empanelled auditor within the timelines specified therein, it further reported.

(With inputs from BloombergQuint and IANS)

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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