RBI bans Mastercard from onboarding new customers on its network from July 22
- The Reserve Bank of India (RBI) has barred global card player Mastercard Asia/Pacific Pte Ltd from onboarding new domestic customers on its network with effect from July 22, 2021, over non-compliance with local data storage regulations.
- This decision is set to affect the card issuing banks and credit card issuers that have co-branded credit cards with vendors on the Mastercard platform or exclusive tie-ups with the payment network for their own credit card issuance.
- Presently, only RBL Bank and YES Bank have exclusive tie-ups with Mastercard.
- However, following this decision, the RBL Bank has now entered into an agreement with Visa Worldwide Pte. Limited to issue credit cards enabled on the Visa payment network.
- RBL Bank is the fifth largest credit card issuer in the country, having approximately 5 percent market share.
Points to Remember:
- RBI has barred which payment system company from onboarding new domestic customers on its network? Mastercard
- RBL has tied up with which payment provider for credit card issuance, after RBI barred Mastercard? Visa
Source: Business Standard1, Business Standard2