Categories: Top Stories

MasterCard cannot issue a new card from July 22: RBI

Mumbai: flexed its muscles on data localization problems, Reserve Bank of India on Wednesday Barred MasterCard from onboarding every new domestic customer from July 22.
The US-based network deals from issuing prepaid cards, credit or debit to New customers under their network in India.
RBI said orders would not have an impact on existing mastercard customers.
MasterCard is the second largest credit card publisher (after visa) in India and the difficult attitude of the central bank can have implications for foreign relations.
The RBI has encouraged all entrusted entities to store data related to Indian customers in Indian land since April 2018.
“Although regardless of a considerable time and adequate opportunities are given, the entity has been found not in accordance with the instructions in the payment system data storage,” RBI said in a statement.
While it is a bank and financial company that issues cards, they partnered both MasterCard, Visa or Rupay for network use.
Every time a swipe card, processing takes place in the payment network cloud.
The MasterCard has been directed to suggest all banks and non-banks that issue cards to adjust this direction.
“MasterCard is fully committed to our legal and regulatory obligations in the market that we operate.
Since the issuance of RBI’s direction that requires domestic payment transaction data storage in 2018, we have provided our consistent updates and reports on our activities and compliance with the provisions needed.
While we were disappointed with the attitude taken by the RBI in their communication on July 14, we will continue to work with them to provide additional details needed to solve their problems, “said the company.
In the case of the number of employees, India ranks second among all markets for the MasterCard.
The company has invested $ 1 billion in India and has announced plans to invest $ 1 billion more.
“Building our investment is quite large and advanced in India, we remain committed to working with our customers and partners in advancing the Digital Vision of India Government,” added the statement.
MasterCard is the third US company to face the RBI ban after the American Express and Diners Club, who faced similar limitations in April.
Amex said that while it did not accept fresh applications, committed to complying with all regulations.
Banking sources say that the visa has fulfilled the norms of data-localization, which is why the payment network is not subject to stricture.
Compliance requires companies to create storage capacity in India that requires investment in “hundreds of millions”, said source.
MasterCard repeatedly searches for more time.
The source said that the payment network might have been waiting for personal data protection law to be placed.
Suresh Ganapatati, Research Analyst, Macquarie Capital, said: “The main concern is that a credit card, which is a product that is favorable for banks, can be influenced because the bank must now switch to VISA or Rupay platform which will take time.
Our conversation with bankers revealed that It can take two months for a new payment platform (say a visa) to remove new plastic and take additional capacity emptied by the MasterCard.
“The payment network has argued to allow mirroring data because transaction information is needed to ensure fraud trends.
The company’s argument is that if Indian transaction data is cut off from the world, the Indian market will not have a global trend advantage.
RBI’s direction seems to come as a surprise for MasterCard.
Recently with July 8, MasterCard announced the launch of ‘Mumbai Metro Card’ in partnership with Axis Bank and Mumbai Metro.
The other in this industry was also surprised when MasterCard agreed to obey.
Local storage norms do not apply to payments where one foot offshore transaction.
The RBI norm also allows data to be sent abroad to be processed but the same thing must be removed from overseas servers at the end of the day.
The challenge here is wherever data sent abroad, the RBI wants an audit report stating that the data is being deleted.

news2in

Recent Posts

44 ordered to attack the procession

Ludhiana: The police have submitted FIR to four identified and at least 40 unknown attackers…

3 years ago

Punjab: Police Reject conspiracy theory in the case of Deep Sidhu

Sonīpat / Ludhiana / Ambala: Actor Punjabi - Activist Activist Deep Sidhu, who died in…

3 years ago

Punjab: Hidden Strength Working Behind PM Narendra Modi, Arvind Kejriwal, said Rahul Gandhi

PATIALA / MANSA / BARNALA: Attacking Prime Minister Narendra Modi and AAP National Convener Kejriawal,…

3 years ago

BJP made AAP to endanger the Congress, said Ajay

Jalandhar: BJP and AAM AAM AADMI parties are one party, Secretary General of the Ajay…

3 years ago

Our job is to make Punjab No. 1 State: Meenakshi Lekhi

Ludhiana: Minister of Union Culture Meenakshi Lekhi while campaigning to support the BJP candidate from…

3 years ago

Feb 20 is an opportunity to change the destiny of Punjab and his children: Bhagwant Mann

Machhiwara (Ludhiana): AAM AAM AADMI Party (AAP) Head of Punjab Candidate and Members of Parliament…

3 years ago