19.1 C
Sunday, October 24, 2021

RBI ban on creating new customers in Mastercard from July 22; What will be the impact on credit and debit card users?

The Reserve Bank of India has prohibited Mastercard from onboarding new domestic customers to its card network with effect from July 22, 2021.

Reserve Bank of India Mastercard Asia/Pacific Pte. Ltd (MasterCard) from adding new domestic customers to its card network with effect from 22 July 2021. The RBI has taken this decision in view that the Mastercard payment system is not complying with the storage of data. A Reserve Bank of India release stated that Mastercard Asia/Pacific Pte. Ltd. has been banned from adding new domestic customers (debit, credit or prepaid) to its card network with effect from 22 July 2021.

It further states that despite being given sufficient time and opportunity, it has been found that the instructions for storage of data in the payment system of MasterCard were not being complied with.

No effect on existing card users

The Reserve Bank has said that its order will not affect existing customers of Mastercard. RBI also said that MasterCard should advise all card issuing banks and non-banking companies to act in accordance with its instructions. The statement further said that the supervisory action has been taken in exercise of the powers conferred under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act) of the RBI. Mastercard is a payment system operator authorized to operate the card network in the country under the PSS Act.

Franklin Case: Shareholders’ consent required to close mutual fund scheme, SEBI’s authority also stamped in Supreme Court’s decision

Through RBI’s circular on storage of payment system data dated 6 April 2018, all system providers were directed to ensure within six months that complete data on payment systems operated by them are stored in systems existing in India only. It’s the same store. They also had to inform the RBI of compliance. They were also to submit a board approved system audit report by the auditors listed in the CERT-In within the given time frame.

(Story: Rajeev Kumar)

Get Business News in Hindi, latest India News in Hindi, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.


Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
Latest news
- Advertisement -
Related news
- Advertisement -


Please enter your comment!
Please enter your name here