Will you help us hit our goal?

35.1 C
Varanasi
Wednesday, September 22, 2021

RBI flexes muscles : Mastercard stopped from getting new customers from July 22

In a major blow to payment services major Mastercard Asia/Pacific Pte Ltd, the Reserve Bank of India (RBI) on Wednesday imposed restrictions on on-boarding of new domestic customers in the country on its card network.

The RBI said that the restrictions have been imposed as in spite of lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on storage of Payment System Data.

“The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte Ltd (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021,” the central bank said in a statement.

It, however, added that the order will not impact the existing customers of Mastercard.

Mastercard will have to advise all card issuing banks and non-banks to conform to these directions. The supervisory action has been taken in exercise of powers vested in the RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act).

Mastercard is a payment system operator authorised to operate a card network in the country under the PSS Act.

As per the RBI circular on storage of payment system data dated April 6, 2018, all 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 Bharat.

They were also required to report compliance to the RBI and submit a board-approved system audit report conducted by a CERT-In empanelled auditor within the timelines specified therein.

(The story has been published via a syndicated feed with a modified headline and minor edits to conform to HinduPost style-guide.)


Did you find this article useful? We’re a non-profit. Make a donation and help pay for our journalism.

HinduPost is now on Telegram. For the best reports & opinion on issues concerning Hindu society, subscribe to HinduPost on Telegram.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Sign up to receive HinduPost content in your inbox

We don’t spam! Read our privacy policy for more info.