What is the problem with Mastercard?

On July 14, the Reserve Bank of India (RBI) said US-based Mastercard had not complied with data storage rules from 2018 (pdf) that require foreign card networks to store Indian payments data within the country so the regulator can have “unfettered supervisory access.” The ban on Mastercard will come into effect on July …

Is Mastercard blocked?

Customers who are using Mastercard in debit or credit form, need not worry. Having said that, the RBI has prohibited the issuing of debit cards, credit cards and even pre-paid cards by banks to new customers going forward. This order comes into effect from July 22.

Is Mastercard ban in India?

The Reserve Bank of India had banned Mastercard from issuing any new cards on July 14 this year for not complying with data localisation requirements. The move had hit a slew of lenders, including RBL Bank, which was fully dependent on the American payment company for its credit card business.

Is Mastercard accepted in India?

Visa and Mastercard are widely accepted in India — especially in the country’s major metropolitan areas, like New Delhi and Mumbai. Large establishments, hotels, restaurants, shops and most online retailers allow you to pay by credit card, and some even accept American Express and Discover.

Does SBI issue Mastercard?

Card-issuing arm of State Bank of India, SBI Card, has only 10 per cent of their card tied up to the banned Mastercard. However, the RBI’s directions will not impact existing customers of Mastercard.

What is the impact of the RBI’s latest MasterCard ban?

On Wednesday, the RBI barred Mastercard indefinitely from onboarding any new customers from July 22nd. This means that the American company will not be able to issue any prepaid, credit or debit cards to new customers in India. Existing customers will not be affected.

Why is MasterCard banned in India?

Mastercard will be indefinitely blocked from issuing debit, credit or prepaid cards to customers in India from July 22. The move comes less than three months after India’s central bank barred American Express and Diners Club International, owned by Discover Financial Services, from issuing new cards due to similar violations.

Why is American Express banned in India?

May 2021:American Express and Diners Club are banned from issuing new cards for violating the 2018 rules. It was the first time that the central bank issued sanctions against card network companies and payment operators in India due to non-compliance with the data storage norms.

Why is RBI unhappy with Deloitte’s MasterCard audit report?

April 2021: Sources informed Reuters that RBI was unsatisfied with a “system audit report” submitted by Mastercard’s auditor Deloitte. The audit was vague about the time Mastercard took to purge Indians’ card data that is processed abroad before being stored locally.