As per the order, MasterCard will be prohibited from issuing debit, credit, or prepaid cards to customers in India from 22 July.
The Reserve Bank of India (RBI) has indefinitely barred Mastercard Inc. from issuing new debit or credit cards to domestic customers for violating the data storage rules. Due to this, several partner banks are moving to VISA and other options. However, current customers will be exempted from the new rule.
As per theRBI notification, MasterCard had not complied with data storage rules from 2018 that mandate foreign card networks to store Indian payments data only in India."Notwithstanding (the) lapse of considerable time and adequate opportunities being given, the entity (MasterCard) has been found to be non-compliant with the directions of Storage Payment System Data," the RBI said in a notification.
MasterCard laters showed its disappointment with the move, saying that it had provided regular updates on its compliance with the rules since 2018.Moreover, in 2019, the company had announced an investment of a billion dollars over the next five years as part of its expansion plans in India.MasterCard further said that it would continue to work with RBI and resolve the concerns soon.
As per the order, MasterCard will be prohibited from issuing debit, credit, or prepaid cards to customers in India from 22 July.Previously in April, RBI had also restricted American Express and Diners Club from adding new customers, citing violation of the same rules.Visa, Mastercard, and several other firms and the U.S. government have previously requested RBI to reconsider the new regulations and have also lobbied to significantly change the rules or completely discard them.
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