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Wednesday, July 28, 2021

Indian Central Bank Orders Mastercard to Stop Issuing New Cards

The Reserve Bank of India (RBI) has ordered Mastercard to stop issuing prepaid, debit, or credit cards to domestic customers after authorities said that it failed to comply with the data storage rules of the country.

In a statement, RBI said that the imposed restriction was due to Mastercard’s noncompliance with the central bank’s direction on Storage of Payment System Data which it has announced in 2018.

RBI also said that it has already given the financial services giant “considerable time and adequate opportunities” to comply with its mandate.

The central bank also said that the order, which will take effect on July 22, will not “impact existing customers of Mastercard” and that the leading financial services company must “advise all card issuing banks and non-banks to conform to these directions.”

Mastercard expressed its disappointment with the order that RBI has issued, adding that it has been providing regular updates on the company’s compliance with the data storage rules since 2018.

“We will continue to work with them to provide any additional details required to resolve their concerns,” Mastercard said late Wednesday.

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