The Reserve Bank of India (RBI) on Wednesday imposed a set of fresh restrictions on Mastercard barring it to add new clients on its network in India from July 22, 2021.
RBI in this regard issued a statement that asserted that the payment system operator has violated the central bank’s norms on the storage of payment systems data.
Taking cognizance of the same, the RBI has imposed a ban on the Mastercard to not add new domestic customers under all the three categories- debit, credit, and prepaid.
The order, however, further cleared that the new rules will
not have any effect on the existing customers and the company will have to
inform all card-issuing banks as well as non-banks to comply with RBI’s
directions.
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The central bank has further added, it has given an adequate time and opportunities to Mastercard the latter failed to comply with its directions on “Storage Payment System Data.”
Earlier in April 2018, the RBI had issued a circular in which it asked all payment system providers to ensure that within a period of six months their entire data related to payment systems (like end-to-end transaction details among other requirements), which is operated by them, is stored in a system only in India.
Notably, earlier this year, the central bank had taken a similar action against American Express and Diners Club for not complying with its directives for which it had restricted them to add new domestic credit card customers from May 1, 2021, onwards.