RBI Mastercard Notification Circular: Mastercard is a payment system operator authorised to operate a card network in the country under the PSS Act, the IANS reported.
New Delhi: Reserve Bank of India’s (RBI) restrictions on Mastercard is commencing today. From today onward, Mastercard Asia / Pacific Pte Ltd (Mastercard) won’t be able to on-boarding new domestic debit, credit or prepaid customers onto its network, according to a circular by India’s central bank.
RBI Mastercard Notification Circular Issue Latest News
- Last week RBI has issued a circular, that says “The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte Ltd (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021.”
- Mastercard were directed to 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 the RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act), as per an IANS report.
- Mastercard is a payment system operator authorised to operate a card network in the country under the PSS Act, the IANS reported.
- However, RBI in its circular stated that the order will not impact the existing customers of Mastercard. This means if you have Mastercard debit card, Mastercard credit card, then you don’t need to worry.’
- The RBI had said that the restrictions have been imposed as in spite of 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, as per IANS report.