RBI imposes curbs on Mastercard over data storage

Mastercard is a payment system operator authorised to operate a card network in the country under the PSS Act.
RBI imposes curbs on Mastercard over data storage
File Photo: Reuters

New Delhi

"The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte Ltd (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021," the central bank said in a statement. It, however, added that the order will not impact the existing customers of Mastercard. Mastercard will have to advise all card issuing banks and non-banks to conform to these directions. 
The supervisory action has been taken in exercise of powers vested in the RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act). Mastercard is a payment system operator authorised to operate a card network in the country under the PSS Act.
As per 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 relating to payment systems operated by them is stored in a system only in India. 
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 the timelines specified therein.

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