Reserve Bank of India (RBI) on July 14 said he had taken monitoring actions to MasterCard quoting non-compliance.
Apart from a fairly large time interval and adequate opportunities given, the entity has been found not in accordance with the instructions on the storage of payment system data, said RBI.
As part of the action, the RBI has imposed restrictions on the Mastercard Asia / Pacific Pte. Ltd. From onboarding new domestic customers (debit, credit or prepaid) to its card network from July 22, 2021, the central bank said.
This order will not have an impact on the existing MasterCard customers. The MasterCard will suggest all card and non-bank issuing banks to adjust this direction, “RBI said.
Supervision measures have been taken in the implementation of the power given to the RBI below Section 17 of the Payment and Settlement System Law, 2007 (PSS Law), RBI said.
MasterCard is an authorized payment system operator to operate a card network in the country.
In terms of RBI circular on data storage payment systems on April 6, 2018, all system providers are directed to ensure that within six months of all data related to the payment system operated by them is only stored in the system.
They are also required to report compliance with the RBI and submit a system audit report approved by the Board carried out by the authorized auditor in the schedule specified in it.
Following Directive RBI, Mastercard issued a statement that said it was fully committed to the legal obligations and regulations in the market operating in Indonesia.
“Since the issuance of RBI’s direction which requires domestic payment transaction data storage in 2018, we have provided consistent renewal 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. July, we will continue to work with them to provide additional details needed to solve their problems. Building our large and advanced investment in India, we remain committed to working with our customers and partners in advancing our Digital Government of India’s vision, ” Further mastercard said.
In April this year, the RBI has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd from new domestic customers to their card network from May 1, 2021, citing the direction of storing data system payments. This order will not have an impact on existing customers.
American Express Banking Corp. and Diners Club International Ltd. It is the operator of the authorized payment system to operate a network of cards in the country under the Payment and Settlement System Law, 2007 (PSS Law).
Action supervision has been taken in the strength training given in the RBI below section 17 of the PSS law, RBI said.
