RBI has given a big relief to America’s payment card service provider Mastercard. RBI has removed the restriction on adding new customers on MasterCard. The move will help Mastercard add new customers. India’s RuPay card is giving tough competition to companies such as Mastercard and Visa. Almost a year after Mastercard Asia/Pacific Pte Ltd was barred from adding new domestic customers to its network, the Reserve Bank of India (RBI) on Thursday Merchant restrictions placed on the Global Card have been lifted “with immediate effect”.
RBI had earlier barred Mastercard from adding new domestic customers to its network for non-compliance with local data storage guidelines. The move made Mastercard the third entity to be banned on these grounds after the RBI in April asked American Express and Diners Club International not to take on new domestic customers.
In view of the satisfactory compliance demonstrated with the Reserve Bank of India (RBI) circular dated April 6, 2018 on storage of payment system data by Mastercard Asia/Pacific Pte Ltd, imposed vide order dated July 14, 2021, RBI said in a statement. The restrictions imposed, on-boarding of new domestic customers have been lifted with immediate effect.
so the ban was imposed
In July last year, restrictions were imposed by the RBI on MasterCard from on-boarding its card network for non-compliance with RBI’s circular on storage of payment system data from new domestic customers (debit, credit or prepaid) on its card network. The central bank had banned Mastercard in July 2021 for failing to comply with norms related to storage of payment data. The Reserve Bank of India (RBI) on Thursday said it has lifted the business restrictions imposed on Mastercard Inc with immediate effect.
Posted By: Navodit Saktawat