RBI bars Mastercard from adding new users

The Reserve Bank of India (RBI) on Wednesday imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22 for non-compliance with the regulator’s directions.

“Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data,” the RBI said. The order would not impact existing Mastercard customers.

An RBI circular on Storage of Payment System Data dated April 6, 2018, directed all system providers to ensure, within six months, the entire data relating to payment systems operated by them was stored only in India. They were to report compliance and also submit an audit report. In April, RBI had barred American Express and Diners Club from on-boarding new users on similar grounds.

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Printable version | Sep 21, 2021 11:40:02 AM |

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