SC: Absence of Independent Witnesses is Not Fatal if Injured Eyewitness Testimony is Sterling  ||  Supreme Court: Prosthetic Limb Costs Must Be Compensated To Restore Victims’ Dignity  ||  Supreme Court: Probate Can be Revoked For Non-Impleadment of Parties and Suppression of Facts  ||  SC: Plaint Cannot be Rejected For Valuation or Court Fee Defects Without Chance to Rectify  ||  SC Rules Government Grants Act Overrides Rent Law, Sets Aside Eviction Proceeding Against Union Govt  ||  SC: Civil Court Has No Jurisdiction in Boundary Dispute Between Maharashtra Panchayat & Municipality  ||  Allahabad HC: Two Criminal Cases Insufficient to Label a Person as 'Goonda' and Harm Reputation  ||  Bom HC: Sprinkling Mustard Without Ill Intent Before a House is Not an Offence under Black Magic Act  ||  J&K&L HC: Preventive Detention Invalid When Based on Speculative Fear of Election Disturbance  ||  Bombay High Court: POSH Act Penalises False Complaints by Women But Not Those Who Instigate Them    

RBI imposes restriction on Mastercard from on-boarding new domestic customers - (14 Jul 2021)

Banking

The Reserve Bank of India (RBI) has imposed restrictions on Mastercard Asia / Pacific Pte. Limited (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. The entity has been found to be non-compliant with the directions on Storage of Payment System Data despite adequate opportunities being given. Mastercard is the third company barred by RBI from acquiring new customers after banning of American Express Banking Corp and Diners Club International over data storage issue.

However, this order will not impact existing customers of Mastercard. The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act). Mastercard is a Payment System Operator authorised to operate a Card Network in the country under the PSS Act. In recent times, there has been considerable growth in the payment ecosystem in the country. These systems are also highly technology dependent, which necessitate adoption of safety and security measures on a continuous basis.

In terms of RBI Circular on Storage of Payment System Data dated April 6, 2018, all System Providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system only in India. They were also required to report compliance to RBI and submit a Board-approved System Audit Report conducted by a CERT-In empanelled auditor within the timelines specified therein.

Tags : SUPERVISORY ACTION   RESTRICTIONS   MASTERCARD  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved