21 Jul 2021 RBI bans Mastercard from issuing new cards in India
Posted at 09:17h in Daily current-affairs 0 Comments
RBI bans Mastercard from issuing new cards in India
According to the RBI, the U.S. card-issuer has failed to comply with the local data storage rules announced by the central bank in 2018.
RBI’s data localization policy
- Card companies such as Visa, Mastercard, and American Express to store all Indian customer data locally
- Companies required to comply with these rules within six months.
- Reason: Local storage of consumer data is necessary to protect the privacy of Indian users and also to address national security concerns
- Mastercard, Visa and other foreign card companies have lobbied to dilute the rules.
- RBI banned Mastercard from issuing new cards to customers from July 22.
- Recently, American Express and Diners Club International were also banned by the RBI from issuing new cards after they failed to comply with the 2018 circular.
- Exception: Existing Mastercard customers, however, can continue to use their cards.
- Indian banks that are currently enrolled in the Mastercard network are expected to make alternative arrangements with other card companies.
- Individual Privacy concerns
- Data ownership