RBI Imposes Restrictions On Mastercard From On-Boarding New Domestic Customers

The Reserve Bank of India (RBI) has imposed restrictions on Mastercard Asia / Pacific Pte Ltd (Mastercard) from on-boarding new domestic customers onto their card networks from 22 July 2021.

Notably, Mastercard is a payment system operator authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the PSS Act.

In terms of RBI circular on storage of payment system data dated 6 April 2018, all payment system providers were directed to ensure that within a period of six months, the entire data relating to payment systems operated by them is stored in a system only in India.

They were also required to report compliance to the RBI and submit a Board-approved System Audit Report (SAR) conducted by a CERT-In empaneled auditor within the timelines specified therein