In a major supervisory action, the Reserve Bank of India on Wednesday indefinitely barred the US-based Mastercard from issuing new credit, debit and prepaid cards with effect from July 22 for its failure to comply with data storage norms.
Mastercard, a major card issuing entity in the country, is the third company to have been barred by RBI from acquiring new customers after American Express Banking Corp and Diners Club International over data storage issue.
The RBI, however, clarified that its supervisory action will not impact the services of the existing customers of Mastercard in the country.
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Mastercard is a payment system operator authorised to operate a card network in the country under the Payment and Settlement Systems Act, 2007.
In terms of RBI's circular on Storage of Payment System Data on April 6, 2018, all system providers were directed to ensure that within a period of six months the entire data relating to payment systems is stored only in India.
They were also required to report compliance to RBI and submit a board-approved System Audit Report conducted by a CERT-In empanelled auditor within specified timelines.