RBI Imposes Restrictions on Mastercard From Onboarding New Customers From July 22

RBI Imposes Restrictions on Mastercard From Onboarding New Customers From July 22

New Delhi, July 14: Reserve Bank of India (RBI) on Wednesday imposed restrictions on Mastercard from onboarding new domestic customers (debit, credit or prepaid) onto its network from July 22 for non-compliance with ‘directions on Storage of Payment System Data’.

As per an official statment, RBI said the new order will not impact existing customers of Mastercard. Informing about the supervisory action on Mastercard Asia/Pacific Pte. Ltd, RBI said, “Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.” Mastercard Donates USD 8.9 Million to Install 2,000 Portable Beds in India to Fight Against COVID-19.

RBI also instructed Mastercard to advise all card-issuing banks and non-banks to conform to the directions. “The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act),” RBI said.

Notably, Mastercard is a Payment System Operator authorised to operate a Card Network in the country under the PSS Act. In terms of the RBI circular on Storage of Payment System Data dated April 6, 2018, all system providers were directed to ensure that within a period of six months the entire 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.

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 the timelines specified therein.

(This is an unedited and auto-generated story from Syndicated News feed, Fresh Headline Staff may not have modified or edited the content body)

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