RBI bars Mastercard from adding new clients in India from July 22
Synopsis
The RBI, however, clarified that the order would not impact existing customers of Mastercard.
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The Reserve Bank of India has restricted Mastercard from onboarding new domestic debit, credit or prepaid customers onto its network from July 22 after being found guilty of non-compliance with directions on data storage.
The RBI, however, clarified that the order would not impact existing customers of Mastercard.
In its circular dated April 6, 2018, the RBI had directed all payment system operators to ensure that payment data, including end-to-end transaction details or payment instructions or any other information processed, should be stored only in servers within India. The RBI had given payment system operators a period of six months.
The payment system operators were also told to submit compliance reports and board-approved system audit reports conducted by a CERT-in empanelled auditor within a specified timeframe.
The central bank said that the action against Mastercard was necessitated after it failed to comply with the directive despite being given considerable time and opportunity.
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