The Reserve Bank of India (RBI) said Thursday it has lifted an 11-month ban on MasterCard’s issuance of new cards after the card network met required legal compliance with data storage guidelines.
“Given the satisfactory compliance demonstrated by Mastercard Asia/Pacific Pte. Ltd. With the circular of the Reserve Bank of India (RBI) dated April 6, 2018 regarding the storage of payment system data, the restrictions imposed, vide order of July 14, 2021, on the onboarding of new domestic customers are lifted with immediate effect,” the exchange said. bank in a statement.
MasterCard, one of the largest card schemes in India, was banned from taking on new domestic customers for debit, credit or prepaid cards from July 22, 2021. While taking action against the company, the RBI had said that despite significant compensation, time and ample opportunities to comply with regulatory standards regarding payment system data, MasterCard was found not to comply with them.
This order did not affect Mastercard customers on board before the ban, which was imposed by the central bank under Section 17 of the Payment and Settlement Systems Act, 2007.
In the April 2018 circular from the RBI on the storage of payment system data, all system providers were required to ensure that all data related to payment systems controlled by them is only stored in a system in India. This data had to include end-to-end transaction details, as well as information collected, transported or processed as part of the message or payment instruction. For any foreign part of the transaction, mirroring of the data abroad was allowed.