RBI Bans Mastercard in India: Following the Reserve Bank of India's (RBI) ban on Mastercard on Wednesday, Mastercard has issued a statement.

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In its statement Mastercard said, "Mastercard is fully committed to our legal and regulatory obligations in the markets we operate in. Since the issuance of the RBI directive requiring on-soil storage of domestic payment transaction in 2018, we have provided consistent updates and reports regarding our activities and compliance with required stipulations."

Mastercard further added, "While we are disappointed with the stance taken by the RBI in their communication dated July 14, we will continue to work with them to provide any additional details required to resolve their concerns." The US-based company has further said that building on their considerable and continued investment in India, they will remain committed to working with their customers and partners in advancing on the government of India's Digital India vision.

On Wednesday, RBI has indefinitely barred the US-based Mastercard from issuing new credit, debit and prepaid cards with effect from July 22, 2021, for its failure to comply with data storage norms.

As per the press release from RBI, in terms of the RBI circular on Storage of Payment System Data dated April 6, 2018, all system providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system only in India. They were also required to report compliance to RBI and submit a Board-approved System Audit Report conducted by a CERT-In empanelled auditor within the timelines specified therein. However, despite adequate opportunities and the lapse of considerable amount of time, Mastercard has been found to be non-compliant with the directions on Storage of Payment System Data.

The RBI has assured that this order will not impact existing customers of Mastercard. Furthermore, Mastercard will have to advise all card issuing banks and non-banks to conform to these directions.