New Delhi. The RBI (Reserve Bank of India) on Wednesday barred Mastercard Asia or Pacific Pte Ltd from adding new domestic customers through its network.
The central bank said in a statement on Wednesday that this moratorium on Mastercard will start from July 22, 2021. According to RBI, MasterCard has not complied with the rules required for foreign card networks to store payment data in India.
This statement has been given through a notification issued by the central bank. Following this restriction, MasterCard will no longer be able to issue debit cards, credit cards or prepaid cards to new customers from July 22, 2021. According to the notification, MasterCard will advise all the card issuing banks and non-banking institutions to follow these instructions.
Will Mastercard debit and credit be valid?
As of the year 2019, Mastercard has issued cards on its network to about 30 per cent of all payment cards in India. In such a situation, now the question is that after the new order of the bank, the debit and credit cards already issued in India will be valid?
Old cards will not be affected
But there is no need to panic. This action will not have any effect on the customers of MasterCard Debit and Credit Cards. After the action taken by the RBI, there is not going to be any effect on the debit or credit cards of Mastercard already used in the country. This order will not have any impact on the former customers of MasterCard. This means that the cards issued by MasterCard will not be worthless.
Will not be able to create new customers from July 22
It is noteworthy that with effect from July 22, RBI has banned the issuance of MasterCard debit cards, credit cards and prepaid cards to new customers. MasterCard has tied up with several private sector banks including HDFC Bank, Yes Bank, ICICI Bank, RBL Bank through debit and credit cards. In such a situation, now no bank will be able to issue cards to new customers through the MasterCard network. After this order, RBL said that they are waiting for information from Mastercard on this action of RBI. In fact, RBL Bank only gives credit cards to customers on the MasterCard network.