According to two senior executives of private sector banks who spoke on the condition of anonymity, the Reserve Bank of India’s (RBI) decision to bar global card network Mastercard from issuing new cards, which comes on the heels of similar punitive actions against two other card networks, will cause significant disruption in India’s evolving payments system.
“Despite the passage of significant time and many opportunity, the business has been deemed to be non-compliant with the directives on Storage of Payment System Data,” the RBI stated.
However, the Central Bank stated that this directive will have no effect on existing Mastercard clients.
All card-issuing banks and non-banks will be advised to follow these guidelines by Mastercard. The RBI used its authorities under Section 17 of the Payment and Settlement Systems Act, 2007 to take the supervisory action.
According to the RBI circular on Payment System Data Storage dated April 6, 2018, all System Providers must ensure that all data (full end-to-end transaction details/information collected/ carried/processed as part of the message/payment instruction) relating to payment systems operated by them is stored in a system only in India within a six-month period.
Mood of the RBI, companies has to store all the transaction data in India only. And no need to store all the transaction details out of India. RBI is restricting for the issuing new cards only.
No need to be concerned if ones use a Mastercard debit, credit, or prepaid card. The RBI’s order only applies to new Mastercard customers, not existing Mastercard customers. Existing clients will be able to continue to use all of the company’s services as before with no modifications.
“Despite the passage of significant time and many opportunity, the business has been deemed to be non-compliant with the directives on Storage of Payment System Data,” the RBI stated.
However, the Central Bank stated that this directive will have no effect on existing Mastercard clients.
All card-issuing banks and non-banks will be advised to follow these guidelines by Mastercard. The RBI used its authorities under Section 17 of the Payment and Settlement Systems Act, 2007 to take the supervisory action.
According to the RBI circular on Payment System Data Storage dated April 6, 2018, all System Providers must ensure that all data (full end-to-end transaction details/information collected/ carried/processed as part of the message/payment instruction) relating to payment systems operated by them is stored in a system only in India within a six-month period.
Mood of the RBI, companies has to store all the transaction data in India only. And no need to store all the transaction details out of India. RBI is restricting for the issuing new cards only.
No need to be concerned if ones use a Mastercard debit, credit, or prepaid card. The RBI’s order only applies to new Mastercard customers, not existing Mastercard customers. Existing clients will be able to continue to use all of the company’s services as before with no modifications.
