RBI restricts Mastercard from onboarding new customers in India
NEW DELHI: The Reserve Bank of India (RBI) on Wednesday restricted Mastercard from adding new customers to its network for not adhering to its norms on storage of payment sy em data.
As per directions, Mastercard cannot issue new debit, credit or prepaid cards to domestic customers from July 22.
Mastercard is a payment sy em operator authorised to operate a card network in the country under the Payment and Settlement Sy ems Act, 2007 (PSS Act).
"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 sy em data," the RBI said in an offi al statement.
However, the order will not impact esting customers of Mastercard.
The central bank has asked the company to advise all card issuing banks and non-banks to confirm to these directions.
Under the PSS Act, RBI had directed all sy em operators in India to ensure that entire data relating to payment sy ems operated by them is stored in India. The platforms were given six months to adhere to these norms.
The directed was issued by the Reserve Bank on April 6, 2018.
Much awaited move! Will send a strong message to Twitter as well. What is your problem to adhere to go nment rules when you do not raise your voice in US or other developed countries
Every company that wants to behave like East India company should be expelled from India
sllavves can't expel masters, unfortunately
Most of these foreign companies still believe that India is ruled by British and can be taken for granted. It is time to nail law breakers.
Excellent decision to tame these racist companies with colonial hangover. kick them out and give business to other card companies
If Mastercard does not comply with India's Laws bar them from operating in India.
We should all go for Rupay and UPI payment sy ems as they are indigenous and plough back money here itself unlike these Americans who steal both money and data.
Easwaran Krishna Swamy
We are growing..India is growing. It's high time that these guys follow the law of the land if they want to survive and do business in our country. Twitter is another rogue company.
When will twitter meet the same fate?
Switch to made in India Rupay
Why RBI has not taken the step before. Better late than never. All these foreign companies are cheating the Indians, we need to teach good lessons to them.
Good move ! China made their union pay accepted by world , time to enforce our laws if they want to do business in india !
India's Payment Sy ems Infra is far superior to sy ems abroad.
No room for any foreign companies that want to run their business the way how they want to do.
Its fair ask to expect customer data to be stored locally. Europe too has GDPR regulations. So what's wrong in expecting the same?
Why is MasterCard needed? If they can't adhere to the law, they should be thrown out. Use so many others that are there including digital payments.
A good first step, but not adequate. Should notify a cut-off date and levy stiff penalty for non-compliance beyond that cut-off and should also stop re-issue of cards by them. where relevant. Also a very good opportunity to improve and prome RuPay cards.
Modi's Rupaycard is useless. Not approved for any out of India payments, international online payments. He wants to kill MasterCard and Visa card payment sy em and prome Indian Rupay cards. That's why RBI has disallowed mastercard.
Govt is now really working for indian people instead of working for americans
Dr Ahmed Khan
Mastercard thinks it's an American co pany and doesn't need to observe laws in India.
It is a step backwards. BJP is destroying everything. No one recognizes Indian Rupay card outside India.