Monday, February 26, 2024

RBI’s big action on Mastercard, ban on issuing Debit, Credit cards

RBI on Mastercard: The Reserve Bank of India (RBI) has taken strong action on MasterCard Asia Pacific and barred it from issuing new debit or credit cards and prepaid cards. The Reserve Bank has taken this action on the part of Mastercard for not following the data maintenance rules. The effect of the Reserve Bank’s action is also likely to have an impact on the digital banking economy in India. Because Mastercard is a big player in this field.

Prohibition on issuing new cards on Mastercard

The ban on issuing new cards on MasterCard will come into effect from July 22. The RBI has taken this action due to the violation of the rules related to the storage of payment system data on behalf of Mastercard. The RBI said that MasterCard has failed despite giving sufficient time and opportunity to comply with the instructions related to the storage of payment system data. RBI has taken this action under Section 17 of the Payment and Settlement Systems Act.

Read More: Threat on India-England Test series, 2 players of Team India Corona positive

Existing customers will not be affected

However, the Reserve Bank has also made it clear that this move will not affect the existing customers of Mastercard. Mastercard will advise all card-issuing banks and non-banks to follow these instructions. Mastercard is a payment system operator. Which operates the card network in the country. Let us tell you that a few months ago, the RBI had banned American Express and Diners Club International from issuing new cards for violating similar rules.

What are the rules of RBI

On 6 April 2018, RBI had issued rules related to data storage for all companies, with fintech providing payment services. According to these rules, all payment service provider companies were to store end-to-end details of payment transactions, all collected information, customer data, etc., data only in India. Companies were given 6 months to implement these rules. These rules were to be followed by card companies like Mastercard, American Express, and Visa as well as fintech companies like GPay, Amazon Pay, Phone-Pe. 

spot_img
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here


Most Popular

Latest

Use UPI like this if on a trip for payment in other countries!

There is excellent news if you are among the millions of UPI users who intend to travel overseas. Yes, you can now use it...

DRDO Recruitment 2024 notification issued! ITI candidates also eligible

DRDO Recruitment 2024: The Defence Research and Development Organisation, DRDO, Hyderabad's Advanced Systems Laboratory (ASL) issued Recruitment notification offline applications for Graduate, Technician (Diploma),...

New NPS rules will go into effect on 1st of April! login to be done in this way

New NPS rules: There is crucial news for you if you also receive pension scheme benefits. PFRDA has made a significant move that will...

Validity of driving license & learner driving license increased by Road Transport Ministry

On Tuesday, the Ministry of Road Transport and Highways issued an order. Those whose driving license, learner's license, or conductor's license was due to...

Mukesh Kumar returns, KL Rahul & Bumrah out of 4th Ind Vs Eng test

Before Ind Vs Eng fourth test match, the Indian team had two significant losses. Due to injuries, both wicketkeeper-batsman KL Rahul and fast bowler...

Most Popular

Subscribe

* indicates required