Mastercard
RBI lifts restrictions on Mastercard
Mumbai: Mastercard is back in the good books of the Reserve Bank of India (RBI) almost a year after the central bank imposed restrictions on its operations.
RBI said Mastercard has achieved "satisfactory compliance".
“In view of the satisfactory compliance demonstrated by Mastercard Asia / Pacific Pte. Ltd. with the Reserve Bank of India (RBI) circular dated April 6, 2018, on Storage of Payment System Data, the restrictions imposed, vide order dated July 14, 2021, on on-boarding of new domestic customers have been lifted with immediate effect,” RBI said in a statement.
RBI had penalised Mastercard, stopping it from onboarding new domestic customers including debit, credit or prepaid onto its card network for non-compliance with the RBI circular on Storage of Payment System Data. The restrictions were imposed on July 14, 2021.
This rule requires all foreign payment operators storing card and customer-related data must do so in servers physically present in India.
RBI introduced the rule through a circular issued in April 2018, over two years ago.
As per RBI’s rules, foreign payment processors can transfer card storage data abroad for smoothing flow but this data should be deleted within 24 hours.
Mastercard is registered as a Payment System Operator (PSO) authorized to operate a card network in the country under the PSS Act.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
