iNDICA NEWS BUREAU-
The Reserve Bank of India (RBI) on Wednesday, July 14, barred the American multinational financial service, Mastercard, from onboarding new debit, credit, or prepaid card customers from July 22, 2021, for failing to comply with its data storage norms.
The central bank said that Mastercard failed to comply with the “directions on Storage of Payment System Data” even after being given “considerable time and adequate opportunities.”
According to the RBI, the restrictions will not impact existing customers of Mastercard.
“Mastercard shall advise all card issuing banks and non-banks to conform to these directions,” it added.
In terms of its circular on Storage of Payment System Data issued on April 6, 2018, the RBI had directed all system providers to ensure that within a period of six months the entire data relating to payment systems operated by them is stored in a system only in India.
The data include full end-to-end transaction details; information collected, carried, processed as part of the message; and payment instruction.
The system providers were also required to report compliance to the RBI and submit a “Board-approved System Audit Report conducted by a CERT-In empaneled auditor within the timelines specified therein.”
The supervisory action has been taken in accordance with the powers vested in the RBI under Section 17 of the Payment and Settlement Systems Act, 2007.
Mastercard has become the third major payment system operator to face restrictions over non-compliance with RBI’s direction on Storage of Payment System Data.
Earlier, the central bank had restricted American Express Banking Corp and Diners Club International Ltd from onboarding new domestic customers onto their card networks from May 1 for violating data storage norms.