RBI bars Mastercard from issuing new cards from July 22

In a major supervisory action the Reserve Bank on Wednesday indefinitely barred the USbased Mastercard from issuing new credit debit and prepaid cards with effect from July 22 for its failure to comply with data storage normsMastercard a major card issuing entity in the country is the third company to have been barred by RBI from acquiring new customers after American Express Banking Corp and Diners Club International over data storage issueIn a statement Mastercard said it is disappointed with the stance taken by RBIThe Reserve Bank of India RBI has today imposed restrictions on Mastercard AsiaPacific Pte Ltd Mastercard from onboarding new domestic customers debit credit or prepaid onto its card network from July 22 2021 the central bank said in a statementThe RBI however clarified that its supervisory action will not impact the services of the existing customers of Mastercard in the countryAnnouncing the ban on Mastercard RBI said notwithstanding lapse of considerable time and adequate opportunities being given the entity has been found to be noncompliant with the directions on Storage of Payment System DataMastercard is a payment system operator authorised to operate a card network in the country under the Payment and Settlement Systems Act 2007 PSS ActIn terms of RBIs circular on Storage of Payment System Data on April 6 2018 all system providers were directed to ensure that within a period of six months the entire data relating to payment systems is stored only in IndiaThey were also required to report compliance to RBI and submit a boardapproved System Audit Report conducted by a CERTIn empanelled auditor within specified timelinesMastercard is fully committed to our legal and regulatory obligations in the markets we operate in Since the issuance of the RBI directive requiring onsoil storage of domestic payment transaction data in 2018 we have provided consistent updates and reports regarding our activities and compliance with the required stipulations it said in a statementWhile we are disappointed with the stance taken by the RBI in their communication dated July 14 we will continue to work with them to provide any additional details required to resolve their concerns it addedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever