RBI prohibits Mastercard to issue new debit, credit cards from today
image for illustrative purpose
US-based Mastercard will not issue new debit, credit cards from July 22. This action comes after Reserve Bank of India (RBI) imposed restrictions on payment system operator Mastercard, barring it from onboarding new domestic customers.
The RBI said in a statement, "The Reserve Bank of India (RBI) has 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."
The regulator announced the supervisory action against Mastercard due to certain rule violations would not impact the services of the existing customers of Mastercard in India. After American Express Banking Corp and Diners Club International, Mastercard is the third company to have been barred by RBI from acquiring new customers over data storage issues.
Under the Payment and Settlement Systems Act, 2007 (PSS Act), Mastercard is a payment system operator authorised to operate a card network in India.
RBL Bank has tied up with Visa to issue credit cards enabled on the Visa payment network around the globe. RBL Bank only issues credit cards on the Mastercard currently.
