After American Express and Diners Club International, the Reserve Bank of India (RBI) has now barred Mastercard from on-boarding any new customers after the company’s failure to comply with RBI’s April 6, 2018 circular on Storage of Payment System Data.

“The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia/Pacific Pte. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021.” RBI said.

The regulator added, “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.” RBI also clarified that this order will not impact existing customers and directed Mastercard to inform all card

issuing banks and non-banks to conform to these directions.

Earlier, in a press release dated April 23, RBI had barred American Express and Diners Club International from on-boarding any new customers starting May 1 for failing to comply with the circular on Storage of Payment System Data. The circular directed all system providers to ensure that their entire data including end-to-end transaction details, information collected/carried /processed as part of the message, payment instructions be stored in a system in India.

They were also required to report compliance to RBI and submit an Audit Report. “System providers shall submit the System Audit Report (SAR) on completion of the requirement. The audit should be conducted by CERT-IN empaneled auditors certifying completion of activity. The SAR duly approved by the Board of the system providers should be submitted to the Reserve Bank not later than December 31, 2018,” the circular had said.