RBI (RESERVE BANK OF INDIA)BARRED MASTERCARD BECAUSE OF NOT FOLLOWING THE Data Localization policy (Personal Data Protection Bill, 2018).

  WHY RBI banned MASTERCARD FROM ISSUING NEW DEBIT &CREDIT  CARDS? 

RBI banned  MASTERCARD from issuing new credit and debit cards on 22 July, strict action taken on MASTERCARD because of not following  the DATA Localization POLICY2018.

   What was fault of MASTERCARD ?:-

●MASTERCARD uses US-based payments major ,where  they were storing customers’ data on their servers located outside the country .

●They were also failing to erase from overseas servers the Indian leg of the transactions data within 24 hours as mandated, three sources aware of the matter told by ET.

●The RBI was concerned about Mastercard's inability to hold payment data in India, according to a source familiar with the situation. “Typically, for companies like Mastercard, there are robust fraud risk engines that collect data from various switches around the world to prevent cross-jurisdiction cloning or phishing attacks,” the source said, adding that Mastercard's insistence on storing this data outside the United States is problematic.

Also read  :-   WHAT MASTERCARD BAN  FROM RBI EFFECT ON US ?

●According to the source, wanted the external audit to be conducted by an international auditor designated by the global unit. The RBI did not agree to these stipulations, which prompted the restrictions, according to the source.


●“A portion of the transaction data has been shifted to India, which Mastercard is citing as a defence, but the RBI wants end-to-end data held locally in the country,” a sources said.

●According to a third-party source who works in the payments business.“Mastercard is sending a duplicate to its overseas systems for their own internal fraud checks to screen out malicious transactions,” the source continued.

Also Read:-    WHAT effect on card market  after  banning  of  MASTERCARD?

 

“In April 2021, when RBI requested additional explanations on our data localisation policy, we enlisted the help of our government-approved audit company to resolve those concerns,” Mastercard stated. “That report was sent to the RBI on July 20, 2021, with a small delay. We are optimistic that this latest filing will offer the reassurance and information needed to satisfy their concerns and move forward.

  These are following  reasons why RBI BAN MASTERCARD,  HOPE you will get satisfied  by reading this article .IF YOU have any questions  just comment us and watch our YouTube video  ....

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