Mastercard submits audit report to RBI
Masterclass said it is committed to put in whatever resources are required to meet any additional requirements raised by RBI
After being banned by the RBI from issuing new cards, US-based payments technology major Mastercard said it has submitted an audit report to the regulator showing compliance with the local data storage norms.
The Reserve Bank had on July 14 put an indefinite ban on Mastercard from issuing new credit, debit and prepaid cards. The ban came into effect from July 22.
The restrictions were put in place because of the company’s failure to comply with local data storage norms that require payments companies to store data related to Indian customers only in the country.
The company said since the RBI’s 2018 directive on data localisation and storage, it has worked closely with the central bank and Indian government to ensure that Mastercard is compliant with both the letter and the spirit of the order.
Further, the company said it is committed to put in whatever resources are required to meet any additional requirements raised by RBI and bring this matter to a close “expeditiously”.
Mastercard is the third company to have been barred by RBI from acquiring new customers over data storage issues, after American Express Banking Corp and Diners Club International.
RBI had said that Mastercard was found to be non-compliant with the directions on ‘Storage of Payment System Data’ despite being given adequate opportunities.