Big News / RBI puts a rock on MasterCard! Bank can't issue debit and credit cards, now what about customers?
The central bank, the RBI, on Wednesday took a major step towards issuing new debit and credit cards by banks and microfinance companies. RBI has banned the issuance of MasterCard. The bank can no longer issue Master Debit and Credit Cards to new or old customers. The RBI's decision will take effect on July 22.
The Reserve Bank had issued a circular in April 2018 ordering this. Accordingly, every online payment company had to create a facility where its data is stored in India. Since when has that six-month period expired? Despite repeated warnings to MasterCard since then, it has not complied with Indian government rules. Earlier in April, the RBI had also banned American Express and Diners Club International cards.
In fact, the debit and credit cards issued by banks are made by companies. One of them is MasterCard Asia / Pacific PTI Limited (MasterCard). The central bank RBI has taken action against the company. The Reserve Bank of India (RBI) on Wednesday banned MasterCard Asia / Pacific Pte Ltd from involving new domestic debit, credit or prepaid customers on its card network from July 22.
According to the RBI, the company has violated RBI rules on payment method data storage. So the RBI has decided to rock MasterCard. This has been imposed under Rock Payment Section 17 and Settlement System Act 2007.
The case of MasterCard is also somewhat similar to Twitter. Just as Twitter is a foreign company and used to be an arena for Indian law enforcement, MasterCard has not complied with the law. The Reserve Bank says MasterCard has not complied with the offer despite ample time and repeated offers. MasterCard is a payment system operator. Which is authorized to operate the card network in the country.As per RBI circular on payment system data storage dated April 6, 2018, all system providers were instructed that complete details regarding these cash transactions managed by you should be saved in India within six months.
MasterCard Inc. is an American multinational company. It provides credit and debit cards worldwide. MasterCard has developed a credit-debit card system for various banks and financial institutions.
How will customers be affected?
The bank cannot issue a new MasterCard after the RBI's decision. However, the Reserve Bank has made it clear that the old MasterCard will continue. This clearly means that all debit and credit card services will continue as before. They will not be affected.
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