RBI Bans Mastercard From Taking New Customers

 

News Cover: Banks across India offer credit cards. the Visa and Mastercard is the second-largest credit card issuing company in India. Mastercard has invested $1 billion in India and has plans to invest another $1 billion. For a long time, the RBI has been forcing credit card companies to store data of Indian customers in India and not abroad. However, Mastercard failed to abide by this rule. They violated the rule as they stored data of Indian customers abroad. This is why the RBI indefinitely banned Mastercard from issuing new credit & debit from July 22. 

The ban was enforced from 22 July. The decision will not impact the services of the existing customers of Mastercard. However, the company will be barred from issuing new cards. Mastercard is not the first company to face such a ban. The first was American Express Banking Corp. and the second, was Diners Club International. Mastercard is the 3rd company to face such a ban. In a statement, Mastercard said that it is disappointed with the decision taken by RBI as it will incur a huge loss because of the ban.