RBI Bans Mastercard From Taking New Customers
RBI has banned Mastercard from issuing new credit and debit cards for failing to comply with data guidelines. Watch our latest video to learn more.
After Visa, Mastercard is the second largest credit card issuing company in India. It has invested $1 billion in India and has plans to invest another $1 billion. For a long time the Reserve Bank of India (RBI) has been forcing credit card companies to store data pf Indian customers in India and not abroad. However, Mastercard failed to follow this rule. The Reserve Bank of India on 14th July 2021, indefinitely banned the US-based Mastercard from issuing new credit & debit from July 22. Mastercard is the third company to be barred by RBI from acquiring new customers. The first was American Express Banking Corp. and second was Diners Club International. In a statement, Mastercard said that it is disappointed with the decision taken by RBI. The RBI, however, clarified that the decision will not impact the services of the existing customers of Mastercard in the country. Because of this decision Mastercard will suffer major losses.