(Bloomberg Opinion) Long before the war in Ukraine, India’s Prime Minister Narendra Modi decided that international card networks could be used as instruments of statecraft and that he should channel the rising economic power of his country’s 1.
Long before the war in Ukraine, India's Prime Minister Narendra Modi decided that international card networks could be used as instruments of statecraft - and that he should channel the rising economic power of his country's 1.4 billion people.
The decision by global card firms to boycott Russia over its invasion of Ukraine may amplify nationalist sentiments. But will RuPay ever become a serious alternative? It may take more than patriotism to take on the entrenched payment institutions.
updated: Jul 17 2021, 07:30 ist
By Andy Mukherjee,
Mastercard Inc. has been told not to issue new cards in India. It’s a move that underscores the urgent need of a US-led digital trade pact to set global standards for what sovereign states can and cannot do to firms that obtain and process data internationally.
The Indian central bank pulled the plug on the US payments network for alleged noncompliance with its controversial local data storage rules introduced three years ago. In April, the monetary authority imposed similar restrictions on American Express Co. and Discover Financial Services’ Diners Club cards. Existing customers are going to be fine in all three cases, but the harsh penalties will still reduce competition in the market.
Mastercard Inc. has been told not to issue new cards in India. It’s a move that underscores the urgent need of a U.S.-led digital trade pact to set global standards for what sovereign states can and cannot do to firms that obtain and process data internationally.
The Indian central bank pulled the plug on the U.S. payments network for alleged noncompliance with its controversial local data storage rules introduced three years ago. In April, the monetary authority imposed similar restrictions on American Express Co. and Discover Financial Services’ Diners Club cards. Existing customers are going to be fine in all three cases, but the harsh penalties will still reduce competition in the market.