RBI lifts restrictions on Mastercard, allows onboarding of new customers

The Reserve Bank of India (RBI) on Thursday announced that it has lifted business restrictions on US-based Mastercard after it imposed the curbs almost a year ago. 

"In view of the satisfactory compliance demonstrated by Mastercard Asia / Pacific Pte. Ltd. with the Reserve Bank of India (RBI) circular dated April 6, 2018 on Storage of Payment System Data, the restrictions imposed, vide order dated July 14, 2021, on on-boarding of new domestic customers have been lifted with immediate effect," the central bank said in a statement.

The restrictions, imposed on Mastercard from issuing new credit, debit and prepaid cards, came into effect from July 22, 2021 for its failure to comply with data storage norms.

Mastercard, a major card issuing entity in the country, was the third company to have been barred by RBI from acquiring new customers after American Express Banking Corp and Diners Club International over data storage issue. However, in November last year, the Reserve Bank had lifted similar restrictions on Diners Club International. 

Mastercard is a payment system operator authorised to operate a card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).