On April 6, 2018, RBI said that it has observed that not all system providers store payment data in India.
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The Reserve Bank of India (RBI) has said in an important decision today that it has taken action on Mastercard citing non-compliance. The RBI said that despite being given ample time, entities have been found not to comply with the instructions on Storage of Payment System Data. The central bank said that, as part of the action, the RBI has imposed a ban on Mastercard Asia/Pacific Pte. Will not be able to add new domestic customers (debit, credit or prepaid) to his card network with effect from July 22, 2021.
RBI said that, this order will not affect existing customers of Mastercard. Mastercard will advise all card issuing banks and non-banks to follow these instructions. RBI said that the action has been taken in exercise of the powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act).
Mastercard is a payment system operator authorized to operate the card network in the country. As per RBI’s circular on storage of payment system data dated April 6, 2018, all system providers were directed to ensure that the entire day related to the payment system operated by them within a period of six months would be a single transaction in India only. is stored in the system.
In April this year, the RBI banned American Express Banking Corp and Diners Club International Ltd from adding new domestic customers to their card networks with effect from May 1, 2021, citing non-compliance with the storage of payment system data. was given. This order will not have any effect on existing customers.
It may be noted that American Express Banking Corporation and Diners Club International Limited are the authorized payment system operators to operate the card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
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