The Reserve Bank of India has banned MasterCard corporate debit and credit cards.
However, it has been reported that existing MasterCard users will not be affected by the new ban. It is noteworthy that MasterCard has been banned for not having a server for storing customer details in India.
The Reserve Bank of India (RBI) has said that old customers will not be affected and new debit and credit cards will not be issued to new customers in India from July 22. However, it is worth noting that this does not have any impact on customers who already have these cards in circulation.
In a statement issued by the Reserve Bank of India (RBI) on the issue, MasterCard did not take appropriate action, despite the fact that MasterCard was given ample time to do so. Data not saved. The Reserve Bank of India (RBI) has said that it has taken this drastic action as MasterCard has refused to comply with the RBI’s order.
Wouldn’t that be a problem?
Companies that provide services such as Visa and MasterCard are foreign companies. However, with the rupee service in India, there will be no problem for domestic customers. However, the problem will only be for customers who plan to use the new internationally.
This barrier, however safe it may be, is not a permanent barrier. So MasterCard is expected to be reactivated if it starts storing data here as per RBI rules. However, no official announcement has been made. This is also seen as a good thing in a way. This allows customers’ data to be stored securely.
Only for MASTER’S CARD?
International financial services companies such as Facebook, Mastercard, Visa, American Express, PayPal, Amazon, Microsoft are likely to suspend operations of international financial services firms that have not yet stored information collected in India.
The RBI had announced that international financial services companies should store the information they collect during their Indian operations in India and develop a framework for this within six months. The deadline for the operation was set for Oct. 15.
International financial institutions have requested an extension of this period, but the RBI has refused to accede to this request. The RBI has stated that this practice is mandatory in the public interest. The RBI hopes that this process will eliminate piracy.
Earlier, Whatsapp introduced the Whatsapp payment facility to store Indian customer information in India. According to experts, this is the reason why international financial services companies are forced to do this.
The RBI’s new regulation has been welcomed by domestic financial services firms. However, international financial services companies are reluctant to increase costs in India.
As the RBI’s deadline expires, the financial services companies that do not comply with the RBI’s order will be suspended. It is noteworthy that daily transactions in India are greatly affected due to the data storage problem!
This can affect fewer users of that international service and eventually, this will be put to an end by proper negations with those institutions by RBI
