ECONOMY

RBI Bars Mastercard From Taking On New Customers In India

Global card network Mastercard has been barred from adding any new customers in India by the Reserve Bank of India. On Wednesday, the regulator said that the action is being taken due to non-compliance with its data storage norms.

“Notwithstanding 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 RBI said in a statement.

The restrictions will kick in starting July 22, 2021.

This is the third global card company against whom the regulator has taken action for not being compliant with data storage norms. In April, the RBI had barred American Express and Diners Club from taking on new customers.

The data storage norms, announced in April 2018, had directed all system providers to ensure that data relating to payment systems operated by them is stored in a system in India. The RBI had given a six-month timeline to be compliant with the guidelines. Additionally, system providers had to also get a board-approved system audit report conducted by a CERT-In empanelled auditor.

Mastercard is one of the top three card issuers in India, along with Visa and Rupay. Most major banks work with the card network to ensure their customers are provided with debit and credit cards along with their bank accounts.

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