New Delhi, July 14 (IANS)| In a major setback to payment services major MasterCard Asia/Pacific Pvt Ltd, the Reserve Bank of India (RBI) on Wednesday banned new domestic customers from joining its card network in the country. The RBI said the restrictions have been imposed as the entity has been found not complying with the instructions for storage of payment system data, despite the passage of time and giving adequate opportunity.
“The Reserve Bank of India (RBI) has prohibited Mastercard Asia/Pacific Pte Ltd (MasterCard) from on-boarding new domestic customers (debit, credit or prepaid) on its card network with effect from July 22, 2021,” the central bank said in a statement. has been banned.” However, it added that this order will not affect existing MasterCard customers.
MasterCard must advise all card issuing banks and non-banks to comply with these instructions. The supervisory action has been taken in exercise of the powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act). Mastercard is a payment system operator authorized to operate card networks in the country under the PSS Act.
As per RBI’s 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 the payment systems operated by them is available only in India. is stored in a system. They were also required to report compliance to the RBI and submit a board-approved system audit report conducted by CERT-In empaneled auditors within the time frame specified therein.
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