We have a piece of big news for you the Reserve Bank of India has banned the Mastercard in India. The global payments services giant Mastercard have been at odds for a while over the issue of customer banking data storage rules issued by RBI. This long-standing dispute between Mastercard and Reserve Bank of India results in the banning of Mastercard by RBI.
Now after this ban Mastercard will not be able to issue Debit or Credit cards in India after 22 July 2021.
The Mastercard was performing bullish in the Indian market due to its plan in India. Now this news of the ban is shocking for everyone, especially for Mastercard holders.
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Here are Points What You Should Keep in Mind:
- The ban on Mastercard will be enforced from 22 July 2021. The Mastercard will not be able to issue new Debit or Credit cards.
- This ban is due to non-compliance by Mastercard with rules and directions given by RBI in April 2018. These rules were about to store the payments data in India.
- The rules and guidelines issued by RBI for data localization were not followed well by Mastercard, Visa, and American Express.
- Before this ban RBI has also issued similar bans on the American Express and Diners Club International for data localization violations.
- Currently Mastercard has tie-up with many Indian banks for issuing credit and debit cards after this ban the banks will suffer more.
- The ban will also affect badly on the $1 billion investment earmarked by MasterCard in 2019 for the next 5 years.
- As this ban is only for issuing new cards so there is good news for existing customers of Mastercard is they will not be affected by the ban.