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Ban on Mastercard over issuing new cards from RBI

By BFTLR Team

The RBI had put an indefinite ban on Mastercard from issuing new credit, debit & prepaid cards. The U.S.-based payment technology has thus submitted an audit report to regulators that showed compliance with the local data storage norms. The restrictions were imposed on the company with regards to the non-compliance with the local data storage norms that demand the companies store data related to Indian customers in the country only. Mastercard said in a statement when RBI had asked to provide a data localization framework, they sought the help of Deloitte to perform the supplemental audit to demonstrate compliance. Since the RBI’s directive, the company is constantly working towards submitting reports & update the filings. The company is ready to provide RBI with any other requirements as far as the matter of compliance is concerned. Mastercard, a card issuing entity is the third company barred by RBI over data storage issues after American Express banking Corp & Diners Club International. RBI had said that this ban on Mastercard is not going to hamper the issue of the existing users. RBI’s circular on storage of payment system data had given a period of six months to the system providers to report compliance to RBI & submit a board-approved system audit report conducted by a Cert-In impaneled auditor.

Source: Money Control

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