In a recent move Reserve Bank of India has banned MASTERCARD from issuing any kind of cards viz., credit, debit or pre paid card from July 22nd. The reason cited by RBI is non-compliance of ‘Storage of Payment System Data’ directions. The said circular dated 6th April 2018 require foreign card networks to store Indian Payments’ data only in India from 2018.
The data rules further says that data that is sent abroad for processing must be deleted there and stored in India only. Earlier RBI has barred American Express and Diners Club International from on boarding any new customers starting May 1st for the same reason.
Visa, Mastercard, American Express have strongly lobbied against the regulations to get them discarded earlier. These companies along with many other companies as well as the US government have previously requested New Delhi to reconsider the rules.
This ban will not affect the existing customers of Mastercard. Mastercard has also said that they have provided consistent updates and reports regarding its activities for the compliance of said stipulations.
Gyan granth 