New Delhi: The Reserve Bank of India (RBI) has taken a big decision on Wednesday regarding the issuance of new debit cards, credit cards, and prepaid cards to banks. In fact, the RBI has taken strict steps on Wednesday, taking action against Mastercard Asia / Pacific Pte Ltd (Mastercard). The central bank has banned Mastercard from adding new domestic customers to its card network with effect from July 22, 2021.
The RBI has taken this action for non-compliance with the rules for local storage of payment system data. The bank said that despite giving ample time and ample opportunity, MasterCard has not fully complied with the guidelines issued on the local storage of payment system data.
The Reserve Bank has asked MasterCard to inform all card-issuing banks and non-bank entities about this order. RBI has taken this supervisory action against MasterCard under Section 17 of the Payment and Settlement Systems Act, 2007.
No impact on existing MasterCard customers
However, RBI has said that this order will not have any effect on the existing card customers. Explain that MasterCard has been approved as a payment system operator under the PSS Act to operate the card network in the country.
