Insta
RBI Imposes Restrictions On Mastercard From On-Boarding New Domestic Customers
Mastercard booth at Mobile World Congress in Barcelona. (Flickr/Kārlis Dambrāns)
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.
The entity has been found non-compliant with the directions on storage of payment system data, said an RBI statement. It added that the order will not impact existing customers.
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.
Earlier, the RBI had imposed restrictions on American Express Banking Corp and Diners Club International Ltd from on-boarding new domestic customers.
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
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