New Delhi: The Reserve Bank of India (RBI) said that it has taken supervisory action on Mastercard citing non-compliance.
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, the RBI said.
The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act), the RBI said. Mastercard is a Payment System Operator authorised to operate a card network in the country.
In terms of the RBI circular on Storage of Payment System Data dated April 6, 2018, all system providers were directed to ensure that within a period of six months the entire data relating to payment systems operated by them is stored in a system only in India.
They were also required to report compliance to the RBI and submit a Board-approved System Audit Report conducted by a CERT-In empanelled auditor within the timelines specified therein.
Following the RBI directive, Mastercard issued a statement saying it was fully committed to its legal and regulatory obligations in the markets it operates in.
“Since the issuance of the RBI directive requiring on-soil storage of domestic payment transaction data in 2018, we have provided consistent updates and reports regarding our activities and compliance with the required stipulations. While we are disappointed with the stance taken by the RBI in their communication dated July 14, we will continue to work with them to provide any additional details required to resolve their concerns. Building on our considerable and continued investments in India, we remain committed to working with our customers and partners in advancing on the Government’s Digital India vision,” Mastercard said further.
In April this year, the RBI had imposed restrictions on American Express Banking Corporation and Diners Club International Ltd from onboarding new domestic customers onto their card networks from May 1, 2021, citing non-compliance with the directions on Storage of Payment System Data. This order will not impact existing customers.
American Express Banking Corporation and Diners Club International Ltd are Payment System Operators authorized to operate Card Networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
The supervisory action has been taken in the exercise of powers vested in RBI under Section 17 of the PSS Act, the RBI said.