Accountants, accounting, international, digital, news, future, business, global

Mastercard banned from issuing new cards in India

Mastercard banned from issuing new cards in India

Mastercard has been banned from recruiting new customers by the Reserve Bank of India (RBI) in a dispute over data protection.

The RBI said the global payments giant had failed to follow rules that state all payment data must be stored in India, giving the regulator “unfettered supervisory access” to details of any transactions.

“Notwithstanding (the) lapse of considerable time and adequate opportunities being given, the entity (Mastercard) has been found to be non-compliant with the directions of Storage Payment System Data,” the RBI said.

Mastercard has now been blocked from issuing debit, credit or prepaid cards to customers in India (effective from 22 July). The central bank said existing Mastercard customers would not be affected. In 2020, Mastercard accounted for one-third of all card payments in India.

In May, the RBI indefinitely suspended American Express and Diners Club International from issuing new cards to customers for the same reasons.