RBI bars Mastercard from onboarding new customers in India

bank of india, Storage of Payment System Data, visa, RBI, mastercard, payment system

The Reserve

Bank of India

on Wednesday has barred US-based card network Mastercard from onboarding new domestic debit, credit or prepaid customers on its card network in India from 22 July onwards.

The central bank’s supervisory action on Mastercard is citing its non-compliance with data localisation mandate wherein all foreign payment operators storing card and customer related data must do so in servers physically present in India.

“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 central bank said in a circular.

Mastercard didn’t immediately comment.

RBI had issued its data storage circular in April of 2018 and given all system providers a time frame of six months to enforce these norms. The central bank said that Mastercard’s existing customers won’t be impacted because of these restrictions.

“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 supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act),” RBI said.

Mastercard is registered as a Payment System Operator authorised to operate a card network in the country under the PSS Act. Other leading card networks in India include US-based Visa and National Payments Corp of India’s RuPay.

ET had reported in March that the central bank had tightened its supervisory norms for payment companies storing customer data in India amid a slew of cyber-security breaches at tech start-ups.

All payment system operators from FY22 were mandated to submit detailed “compliance certificates” to the central bank twice a year, confirming adherence to all RBI regulations around security and storage of payment data. RBI had asked these certificates to be submitted on April 30 and October 31 every year.

These requirements are over and above those mandated by the central bank in April of 2018, when it asked all payment companies to submit board-approved annual System Audit Reports (SAR) by CERT-empanelled auditors.

These companies were also asked to submit a one-time compliance report with data localisation norms mandating that data relating to payments in India will be stored in a server physically present in the country by December of 2018.

Internet Explorer Channel Network
News Related

OTHER NEWS

Social Security benefits are getting biggest boost in 40 years. Here's why it can't always jump so much each year

Don Bayley | Vetta | Getty Images This week's announcement of the highest Social Security cost-of-living adjustment since 1982 was welcome news for retirees. It will help alleviate the financial ... Read more »

Social Security benefits are getting biggest boost in 40 years. Here's why that doesn't happen every year

Don Bayley | Vetta | Getty Images This week's announcement of the highest Social Security cost-of-living adjustment since 1982 was welcome news for retirees. It will help alleviate the financial ... Read more »

Fed's Barkin backs tapering plans and expresses concern about inflation

Richmond Federal Reserve President Thomas Barkin said Friday he's on board with reducing the amount of economic help the central bank is providing as concerns grow about inflation. With the ... Read more »

Michael Burry of ‘The Big Short' asked about shorting crypto days before bitcoin hit $60,000

Andrew Toth | FilmMagic | Getty Images “The Big Short” investor Michael Burry inquired about ways to bet against bitcoin just before the world's largest cryptocurrency hit a six-month high to ... Read more »

Two out of ten Norwegian companies had their corona compensation application rejected

Two out of ten companies had their compensation application rejected during the pandemic. Figures that P4 collected show that the Tax Administration and the Brønnøysund Register Center received 131,294 applications ... Read more »

16 million people 65 and older will be in the workforce by 2030. These are the best and worst states for them to work and live

RUNSTUDIO | The Image Bank | Getty Images The number of older workers in the labor force is expected to swell over the next decade. By 2030, there will be ... Read more »

How to know if actively managed exchange-traded funds are right for your portfolio

MoMo Productions | DigitalVision | Getty Images Exchange-traded funds are often associated with passive strategies. But money has also poured into the actively managed version of ETFs, as investors crave ... Read more »

Stocks making the biggest moves premarket: Moderna, Virgin Galactic, Truist and more

Check out the companies making headlines before the bell: Moderna (MRNA) – Moderna added 3.2% in premarket trading after rising 3.2% yesterday, following an FDA panel recommendation for a booster ... Read more »

Dussehra 2021: A look at the preparations for Ravan Dahan

India gear up for Dussehra or Vijaydashami celebration on October 15 amid the ongoing COVID-19 pandemic. Dussehra is celebrated after Navratri, a Hindu festival that spans nine days every year. ... Read more »

RSS chief flags concerns over 'unregulated' OTT content, 'uncontrolled' Bitcoin and drug consumption

Flagging serious concerns over the “unregulated” content being shown on OTT platforms, “uncontrolled” Bitcoin currency that has potential to “destabilise economy of all countries” and use of narcotic drugs by ... Read more »

Man lynched at Singhu border, hand chopped off

A man was lynched, his hand chopped off and the body tied to a metal barricade at a farmers” protest venue at Kundli near the Delhi-Haryana border, a gruesome incident ... Read more »

BSF jurisdiction row: AAP accuses Punjab CM Charanjit Singh Channi of surrendering over half of the state to Modi govt

Punjab CM Charanjit Singh Channi meets with PM Modi at his residence in Delhi (Image: Twitter/ PMO India) The Aam Aadmi Party (AAP) on Friday targeted the Punjab government over the issue ... Read more »

China central bank says Evergrande risks 'controllable'

China‘s central bank said Friday that the risk of spillover from embattled property giant Evergrande to the financial sector was “controllable”, breaking its silence on the company’s debt troubles, state ... Read more »

IT department detects Rs 184 crore black money after raids on Mumbai realtor, linked entities

Kerala had set up India’s first lottery department in 1967. The Income Tax Department detected unaccounted income of about Rs 184 crore after it recently raided two real estate business ... Read more »

UK to allow cheaper COVID-19 tests for returning vaccinated travellers from countries not on red list

Fully vaccinated travellers returning to England from countries not on the travel ban red list can take a COVID-19 negative Lateral Flow Test (LFT) instead of the more expensive Polymerase ... Read more »

Moscow says it is first to launch large-scale metro facial ID payment system

1 / 2Moscow says it is first to launch large-scale metro facial ID payment systemFILE PHOTO: Passengers are seen at a metro station in Moscow MOSCOW (Reuters) – Moscow's sprawling ... Read more »

Ashish Kacholia dumps shares of this smallcap multibagger in Sept quarter

NEW DELHI: Value investor Ashish Kacholia, famous for finding hidden gems in smallcap space, dumped shares of Apollo Pipes during the July-September period, possibly exiting completely from the company. The ... Read more »

Covid outbreak in Delhi shows herd immunity against Delta variant difficult: Study

The severe outbreak of COVID-19 in Delhi this year showed that the Delta variant of SARS-CoV-2 can infect individuals previously infected by a different variant of the coronavirus, highlighting the ... Read more »

India's economy recovered very fast after tough phase of COVID-19 pandemic, says PM Modi

Prime Minister Narendra Modi on Friday said the recovery of India’s economy after the difficult phase of COVID-19 pandemic has been robust. He was speaking after a virtual ground-breaking ceremony ... Read more »

Nippon Steel sues Japan business partner Toyota over patent

Nippon Steel Corp. is suing Toyota Motor Corp. over a patent for a technology used in electric motors in a rare case of legal wrangling between Japan‘s top steelmaker and ... Read more »

Evergrande's $1.7 billion Hong Kong headquarters sale flops as buyer withdraws

Chinese state-owned Yuexiu Property has pulled out of a proposed $1.7 billion deal to buy China Evergrande Group’s Hong Kong headquarters building over worries about the developer’s dire financial situation, ... Read more »

Rights of Hindu temples must be handed over to Hindu devotees; its wealth be used for Hindus only: Bhagwat

Expressing concern over the state of affairs of some temples in the country, RSS chief Mohan Bhagwat on Friday said the operating rights of such entities must be handed over ... Read more »

PE Investment in real estate jumps 24% annually in July-September at Rs 3,500 crore: Report

Kerala had set up India’s first lottery department in 1967. Private equity investment in real estate rose 24 per cent year-on-year to USD 477 million (about Rs 3,500 crore) during ... Read more »

Security forces apprehend 4 cadets of Niki Sumi group

Security Forces in a joint operation with Police apprehended four cadres of Niki Sumi group near general area Daba Gaon, Dimapur. Based on a specific input, Security Forces in a ... Read more »

Contactless payment rises TODAY but you can set a limit on your card - here's how

The contactless limit is one of very few policies introduced during the pandemic that the Government has kept in place. In early 2020, the increased £45 limit allowed people to ... Read more »

European equities climb at open on better-than-expected US recovery

European stock markets opened higher on Friday, with investors encouraged by a strong start to the US earnings season. In initial trade, London’s benchmark FTSE 100 index won 0.4 percent ... Read more »

Setting aside COVID concerns, children step into world of knowledge in Kerala on Vijayadasami

The little Almit Prabha was elated and curious when scribbled his first letters of life sitting on the lap of his father. As the priest gifted him a palm-leaf engraved ... Read more »

Asian markets rally as earnings offset inflation, taper worries

Hong Kong: Asian markets extended a global rally Friday on optimism for corporate earnings after a strong start to the reporting season, while traders cheered better-than-expected data indicating the US ... Read more »

Mohan Bhagwat calls for review, reformulation of National Population Policy keeping next 50 years in mind

RSS chief Mohan Bhagwat Expressing concern over the “rapid growth” in the country’s population, RSS chief Mohan Bhagwat on Friday called for a review and reformulation of the National Population ... Read more »

India slips seven positions to 101, in Global Hunger Index 2021, lags behind Pakistan, Bangladesh and Nepal

India has slipped to 101st position in the Global Hunger Index (GHI) 2021 of 116 countries, from its 2020 position of 94th and is behind its neighbours Pakistan, Bangladesh and ... Read more »

Earn 9pc returns with these little-known savings plans

Advertised returns of more than 9pc should be enough to raise the eyebrows of any saver, but a handful of little-known schemes could offer a safe route to solid profits. ... Read more »

Most investors would dump a stock after an accounting scandal

© Provided by This Is Money MailOnline logo Most investors would dump a stock after an accounting scandal, cyber hack or environmental disaster, new research shows. Financial corruption and human ... Read more »

KDB's W10tr investment in fossil fuels contradicts green pledge: lawmaker

The state-run Korea Development Bank headquarters in Seoul. (Yonhap)The state-run Korea Development Bank extended or guaranteed loans worth a combined 10.3 trillion won ($8.7 billion) for fossil fuel projects in ... Read more »

Odisha: Physical classes for 8, 11 standard students to resume from Oct 21

The Odisha government on Friday announced resumption of physical classes for students of 8th and 11th standards from October 21 as the state is witnessing a declining trend in COVID-19 ... Read more »

24 empty wagons of goods train derail in UP

Twenty-four empty wagons of a <a href="/tag/goods-train“>goods train derailed near Ambiapur on the busy Delhi-Howrah rail route, almost 50 km from Kanpur railway station Friday, officials said, adding no loss ... Read more »

Fiscal chief voices concerns over US request to share chip info

Deputy Prime Minister and Finance Minister Hong Nam-ki (left) poses with US Treasury Secretary Janet Yellen in Washington on Thursday, Eastern time. (Yonhap)South Korea’s Finance Minister Hong Nam-ki voiced concerns ... Read more »

RSS chief Mohan Bhagwat urges state govts to hand over operating rights of Hindu temples to Hindus

Rashtriya Swayamsewak Sangh chief Mohan Bhagwat on Friday suggested that the operating rights of the Hindu temples be handed over to the Hindu community. The RSS chief also suggested that ... Read more »

India has faced Covid crisis with resilience and fortitude: Sitharaman

India has not only faced the COVID-19 crisis with great resilience and fortitude but has also played a major role and “walked the talk” on the global fight against the ... Read more »

IIM-Udaipur ranked among country's top 100 B-schools in FT-MIM ranking for 3rd consecutive year

Representational image Indian Institute of Management, Udaipur has been ranked among the top 100 business schools in the Financial Times (FT) Master in Management (MIM) global ranking for the third ... Read more »