On Wednesday RBI Bans MasterCard from Issuing Credit Cards to New Customers. This is Ban on Fourth Entity after HDFC Bank, American Express Banking Corporation, and Diners Club International to which RBI restricts from Making New Customers. RBI Said that It has taken action against MasterCard citing non-compliance. From July 22, 2021, MasterCard Cannot issue New Cards(Debit, Credit, and Prepaid Cards) to New Customers. Existing Customers will not be affected by this Decision by RBI.
Why RBI Restricts MasterCard From adding New Customers
RBI said that After Giving So Much Time Entity is not following Norms of Storage of Payment System Data. According to Payment Storage Data of RBI Dated 6th April 2018, All system providers were directed to ensure that the entire day relating to the payment system operated by them within a period of six months is stored in one system only in India.
RBI said that the action has been taken in the exercise of the powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act).
RBI Bans MasterCard Asia/Pacific PTE in India.
What is the Work of MasterCard in India?
MasterCard is a Payment System Operator. It Operates all types of Cards such as Credit Card, Debit Card and Prepaid Card in India.
Also Read- RBI Restricted American Express and Diners Club From Issuing New Credit Cards from 1st May 2021
RBI Before Bans American Express Banking Corp and Diner Club International LImited From Joining New Customers
In April 2021, RBI Bans American Express Banking and Diners Club International from Issuing Credit Cards to New Customers from 1st May 2021 on a Domestic Level. This Ban was Implemented because of a Violation of the Storage of Payment System Data. Existing Customers was not affected by this Decision
American Express Banking and Diners Club International Limited is the Payment system operator which is authorized to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).