Thu, 16 Jun 2022 08:16 PM IST
New Delhi | Jagran Business Desk: The Reserve Bank of India (RBI) on Thursday lifted the restrictions it had imposed last year on Mastercard for failing to comply with the domestic data storage norms. The RBI said that Mastercard has shown satisfactory compliance with the data storage norms, hence, it is lifting the restrictions imposed on the US-based payment gateway in 2021.
"In view of the satisfactory compliance demonstrated by Mastercard Asia / Pacific Pte. Ltd...on Storage of Payment System Data, the restrictions imposed...on on-boarding of new domestic customers have been lifted with immediate effect," the RBI said in a statement.
The RBI last year in July had restricted Mastercard from onboarding new domestic customers (debit, credit and prepaid) in India onto its card network for non-compliance with 'directions on Storage of Payment System Data'. However, the federal bank had asserted that the restriction won't affect the existing customers of Mastercard.
"Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data", the RBI had said in a statement.
America-based Mastercard became the third payment system operator on which the RBI had imposed restrictions over non-compliance with the RBI's direction on Storage of Payment System Data. Earlier, RBI had restricted American Express Banking Corp and Diners Club International Ltd from onboarding new domestic customers onto their card networks from May 1 for violating data storage norms.
In April 2018, the RBI had directed all Payment System Providers to ensure that within a period of six months the entire data (full end-to-end transaction details/information collected/carried/processed as part of the message/payment instruction) relating to payment systems operated by them is stored in a system only in India.
The global payments processor sees India as a key growth market and has invested USD 2 billion in the country since 2014 to build technology centres and support innovation in digital payments.
(With Agencies Inputs)