Mumbai2 days ago
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The Reserve Bank of India (RBI) took major action on Mastercard on Wednesday. Under this, the company will no longer be able to add new customers to its network from July 22, which includes domestic debit, credit or prepaid card customers.
According to RBI, Mastercard has violated its norms on storage of payment system data in India, for which action has been taken against the payment system operator. However, the order will not have any impact on existing Mastercard customers.
What are the RBI norms, which Mastercard did not meet
Let us inform that RBI in its order has directed all card issuing banks and non-banks to follow the instructions. According to the RBI circular issued in April 2018, all payment system providers were asked to ensure that their complete data related to the payment system (such as transaction details among other requirements) operated by them within a period of six months And only one system has stores in India. Action has been taken against Mastercard for not meeting these criteria.
Diners Club including HDFC Bank, American Express has also been banned
This is not the first such incident in 2021, before this RBI has taken similar action against American Express and Diners Club. Both of them were barred from adding new domestic credit card customers to their networks with effect from 1 May 2021.
In December, the RBI also temporarily banned all digital launches on HDFC Bank, including new credit cards. Because the bank’s IT system was facing problems for the last two years, due to which there were many glitches in internet banking and payment system.