It’s a huge blow to international payment gateway giant MasterCard. Reserve Bank of India (RBI) bans Mastercard from issuing new cards in the data storage row. RBI in a press release said Mastercard Banned in India Had not followed data storage rules from 2018 that require networks to locally store Indian payments data.
RBI has banned the addition of new customers to its network in India since the 22nd of this month. This means that MasterCard will not issue new debit credit or prepaid cards. The Reserve Bank of India has sued the company for violating the terms of payment information deposit.
Mastercard Banned in India by RBI:
Reserve Bank of India takes supervisory action on Mastercard Asia / Pacific Pte. Ltd.https://t.co/Awx9t2Ssdt
— ReserveBankOfIndia (@RBI) July 14, 2021
It has made it clear that it will not have any impact on current customers of MasterCard. It directed the Mastercard shall advise all card-issuing banks and non-banks to conform to these directions. It imposed already a ban on American Express Banking Corp and Diners Club International from 1 May.
