Recorded RBI impact
Business restriction
Business restriction · Fresh imposition
Published by RBI
14 Jul 2021
Case Brief
The Reserve Bank of India imposed supervisory restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) for non-compliance with the RBI's directions on Storage of Payment System Data. RBI said Mastercard had been given sufficient time and opportunities but remained non-compliant. The order bars Mastercard from onboarding new domestic customers — debit, credit, or prepaid — onto its card network starting July 22, 2021. Existing customers are not affected. The action was taken under Section 17 of the Payment and Settlement Systems Act, 2007. RBI's background note states that system providers were required to store end-to-end payment data in India and to submit compliance reporting and a board-approved audit report.
Why RBI Acted
RBI found Mastercard Asia / Pacific Pte. Ltd. non-compliant with the directions on Storage of Payment System Data. The company had been given considerable time and adequate opportunities, but did not comply with RBI's April 6, 2018 circular requiring all system providers to store the entire payment-system data in India, report compliance to RBI, and submit a Board-approved System Audit Report by a CERT-In empanelled auditor. Under Section 17 of the Payment and Settlement Systems Act, 2007, RBI restricted Mastercard from onboarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021.
Operating Impact
Mastercard cannot add new domestic card customers in India from the stated effective date, though existing customers may continue using the network. Mastercard must ensure compliance with RBI's data storage requirements and related reporting/audit obligations; card-issuing banks and non-banks are also directed to conform to these requirements.
Regulatory Basis
- Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act)
Action Facts
- Primary Impact
- Business restriction
- Order Date
- 6 Apr 2018
- Effective From
- 22 Jul 2021
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- Payment entity
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