RBI lifts 11-month ban on new card issuances by MasterCard

The Reserve Financial institution of India (RBI) on Thursday mentioned that it has lifted an 11-month ban on issuance of recent playing cards by MasterCard, after the cardboard community met with the required regulatory compliances on information storage pointers.

“In view of the passable compliance demonstrated by Mastercard Asia / Pacific Pte. Ltd. with the Reserve Financial institution of India (RBI) round dated April 6, 2018 on storage of fee system information, the restrictions imposed, vide order dated July 14, 2021, on on-boarding of recent home prospects have been lifted with fast impact,” the central financial institution mentioned in a press release.

One of many largest card schemes working in India, MasterCard was barred from on-boarding new home prospects for debit, credit score or pay as you go playing cards, beginning July 22, 2021. Whereas taking motion towards the corporate, the RBI had mentioned that regardless of being given appreciable time and satisfactory alternatives to adjust to regulatory norms on fee system information, MasterCard was discovered to be non-compliant with them. 

This order didn’t affect prospects of Mastercard who had been on-boarded previous to the ban, which was imposed by the central financial institution beneath Part 17 of the Cost and Settlement Techniques Act, 2007.

The RBI’s April 2018 round on storage of fee system information required all system suppliers to make sure that your entire information regarding fee programs operated by them be saved in a system solely in India. This information was to incorporate end-to-end transaction particulars, in addition to info collected, carried or processed as a part of the message or fee instruction. For the overseas leg of the transaction, if any, mirroring of the info within the overseas nation was permitted.

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