With Mastercard ban, RBI firms up data localisation stance
The central bank made no bones about MasterCard’s non-compliance even after ‘considerable time and adequate opportunities’ to fall in line with its April 2018 circular on localisation of data storage.
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File photo of a sign for MasterCard credit cards is shown on the entrance to a bank, in New York. (Photo | AP)
The RBI has sent out a stern reminder that businesses must follow the letter of the law. On Wednesday, it barred global payments systems provider MasterCard, whose market share in India is roughly a third of total debit and credit cards currently. The central bank made no bones about MasterCard’s non-compliance even after ‘considerable time and adequate opportunities’ to fall in line with its April 2018 circular on localisation of data storage. The RBI had also asked foreign banks for a board-approved system audit report certifying compliance with its data localisation norms, which MasterCard and others have failed to furnish even after three years. In the recent past, the RBI has barred players like American Express and Diners Club, and the latest rap only reiterates the central bank’s intent to solidify its stance on data localisation.