Reserve Bank of India reconsidered its ban on the Mastercard business.
Last year, the Reserve Bank of India indefinitely barred Mastercard, American Express and Diners Club from issuing new debit, and credit cards due to non-compliance with local data retention rules. Per Techcrunch, the restrictions that came into force on July 14, 2021, were lifted immediately after Mastercard Asia showed diligence in meeting the requirements.
After careful analysis and finding that Mastercard shows compliance with all local data storage regulations, India is giving Mastercard the green light. Other companies have yet to make some crucial adjustments to their operations to have the Reserve Bank reconsider its decision.
Under data retention rules in India dating back to 2018, payment companies must store all transactional data on in-country servers. Earlier, Mastercard made repeated attempts to make the RBI revise this set of rules. However, the result was possible only now.
At this point, this is truly a landmark decision for Mastercard’s operations in India. The company invested more than $2 billion over the last decade.
We`ve reported that Verizon teamed up Mastercard and FNBO to present a small business credit card.