Comments
The Reserve Bank of India has lifted restrictions placed on Mastercard on expanding its customer base with immediate effect.
The RBI had imposed restrictions on Mastercard from on-boarding new domestic customers onto its card network from July 22, 2021 after it failed to comply with the RBI order on storing data locally.
The central bank had made it mandatory for banks to store all the data relating to payment systems in India. For the foreign leg of the transaction, if any, the data could also be stored abroad, if required. The data includes end-to-end transaction details, information collected, carried and processed as part of the message/payment instruction.
Compliance to RBI
Further, they were also required to report compliance to the RBI and submit a Board-approved System Audit Report conducted by a CERT-In empanelled auditor within a set timeline.
In July last year, the RBI had said that Mastercard did not comply with the order “notwithstanding lapse of considerable time and adequate opportunities being given”.
The RBI had imposed similar restrictions on American Express Banking Corp and Diners Club International from on-boarding new domestic customers onto their card networks from May 1, 2021.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.