Mastercard has been barred by RBI from adding new clients in India for non-compliance with local data storage norms from 22 July.
Notwithstanding the 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 said. This order will not impact existing customers of Mastercard. Mastercard shall advise all card-issuing banks and non-banks to conform to these directions, the statement read. The supervisory action has been taken in the exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act), the RBI said.
Mastercard is a Payment System Operator authorized to operate a Card Network in the country under the PSS Act