RBI bans adding new customers to MasterCard
Due to non-compliance with the rules of local storage of payment system data, the ban will be effective from July 22
MUMBAI: The Reserve Bank of India (RBI) today took major action against MasterCard Asia / Pacific PTE Limited (MasterCard). The Reserve Bank has banned MasterCard from adding new customers to its network from July 22, 2021. The ban has been imposed due to non-compliance with certain rules.
The Reserve Bank of India (RBI) has taken a major decision today as debit cards, credit cards and prepaid cards issued by most banks in the country are being provided by multinational companies like MasterCard.
The RBI has taken this action for non-compliance with the rules of local storage of payment system data. The bank said that despite more time and frequent offerings, MasterCard did not fully comply with the guidelines regarding local storage of payment system data.
The Reserve Bank has informed MasterCard that it will notify all banks and non-banking institutions issuing the card. The RBI has taken this supervisory action against MasterCard under Section 17 of the Payment and Settlement Act, 2007.
No effect on existing customers
The Reserve Bank of India (RBI) has said that the order will not affect existing customers using MasterCard. MasterCard was approved as a payment system operator to operate the card network in the country under the PSS Act.
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