RBI RESTRICTS MASTERCARD FROM ADDING NEW CUSTOMERS

MUMBAI: Barely three months after cracking the whip on American Express and Diners Club for non-compliance with local data storage norms, Reserve Bank of India (RBI) on Wednesday barred Mastercard Asia from signing up new card customers on similar grounds.

The multinational card network will not be allowed to on-board new credit, debit or prepaid card customers in India beginning 22 July, a statement said, adding that the order will not affect existing Mastercard customers. In April 2018, RBI set a six-month deadline for system providers to store all their payments data solely in India.

MUMBAI: Barely three months after cracking the whip on American Express and Diners Club for non-compliance with local data storage norms, the Reserve Bank of India (RBI) on Wednesday barred Mastercard Asia from signing up new card customers on similar grounds.

The multinational card network will not be allowed to on-board new credit, debit or prepaid card customers in India beginning July 22, an RBI press release said, adding the order will not affect existing Mastercard customers. The regulator asked all card-issuers to follow its directions.

“Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be noncompliant with the directions on Storage of Payment System Data,” it said.

MasterCard did not respond to an email seeking comments till the time of going to press.

In April 2018, RBI set a sixmonth deadline for all system providers to store all their payments data solely in India.

They were also required to report compliance to RBI and submit a board-approved system audit report conducted by a CERT-In (Indian Computer Emergency Response Team)empanelled auditor within specified timelines. The regulator said this was to ensure improved oversight over licensed entities in case of fraud or money laundering.