With RBI authorization, Mastercard can now add new subscribers for its debit and credit cards
The Reserve Bank of India (RBI) on Thursday lifted restrictions imposed last year on MasterCard and enabled the global payment processor to integrate new customers for debit, credit or prepaid cards in India, after satisfactory compliance with data storage standards. In July 2021, RBI had imposed restrictions on the US-based Mastercard and banned it from issuing new credit, debit and prepaid cards for its failure to comply with data storage guidelines. India’s banking regulator had banned the company from failing to comply with data storage rules.[1]
“In view of the satisfactory compliance demonstrated by Mastercard Asia/ Pacific Sgt. ltd. With Reserve Bank of India…On storage of payment system data, restrictions imposed…On onboarding new domestic customers was lifted effective immediately,” RBI said in a statement. With this RBI authorization, Mastercard can now add new subscribers for its debit and credit cards.
Mastercard is a payment system operator authorized to operate a network of cards in the country under the Payment and Settlement Systems Act, 2007 (PSS law). In accordance with the Payment System Data Storage Standards published in April 2018, all system providers have been asked to ensure that all data relating to the payment systems they operate is stored only in India. They were also required to report their compliance to RBI and submit a board-approved report. System audit report carried out by a CERT-In approved auditor within the specified deadlines.
Many foreign companies lack to comply with these new regulations. In May 2021, RBI had imposed restrictions on American Express and Map of Diners for not subscribing to Indian database retention laws[2]. In November last year, the Reserve Bank survey similar restrictions on Diners Club International.
Reference:
[1] Mastercard will stop issuing new debit and credit cards from today after RBI ban – Jul 22, 2021India today
[2] RBI prevents American Express and Diners Club from adding new customers from May 1 – April 23, 2021PGurus.com
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