Reserve Bank of India lifts a yearlong curbs on Mastercard, allows it to onboard new customers

Mastercard can be everywhere you want it to be, again!

June 16, 2022

With RBI clearance, now Mastercard can add new subscribers for its Debit and Credit cards

The Reserve Bank of India (RBI) on Thursday lifted the restrictions imposed last year on Mastercard and allowed the global payment processor to onboard new customers for debit, credit, or prepaid cards in India, after satisfactory compliance with data storage norms. In July 2021, RBI had imposed restrictions on the US-based Mastercard and barred it from issuing new credit, debit, and prepaid cards for its failure to comply with data storage guidelines. India’s banking regulator had barred the company from failing to comply with data storage rules.[1]

“In view of the satisfactory compliance demonstrated by Mastercard Asia/ Pacific Pte. Ltd. With the Reserve Bank of India …On Storage of Payment System Data, the restrictions imposed…On on-boarding of new domestic customers has been lifted with immediate effect,” said RBI in a statement. With this RBI clearance, now Mastercard can add new subscribers for its Debit and Credit cards.

Mastercard is a Payment System Operator authorized to operate a card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). As per the norms on Storage of Payment System Data issued in April 2018, all system providers have been directed to ensure that the entire data relating to payment systems operated by them is stored only in India. They were also required to report compliance to RBI and submit a board-approved System Audit Report conducted by a CERT-In empanelled auditor within the specified timelines.

Many foreign companies failed to comply with these new regulations. In May 2021, RBI had imposed restrictions on American Express and Diners Card for not subscribing to Indian laws on keeping databases[2]. In November last year, the Reserve Bank lifted similar restrictions on Diners Club International.

Reference:

[1] Mastercard to stop issuing new debit, credit cards from today after RBI ban – Jul 22, 2021, India Today

[2] RBI restricts American Express, Diners Club from adding new customers from May 1 – Apr 23, 2021, PGurus.com

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.

Author
Recent Posts

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.