RBL Bank Signs Up Visa For Credit Cards After RBI Bars Mastercard

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RBL Bank has signed up Visa for its credit cards after RBI barred Mastercard

A day after Reserve Bank of India (RBI) barred Mastercard from adding new customers from July 22, 2021 onwards in the country, RBL Bank announced that it has signed up Visa Inc for its credit cards. The central bank had barred Mastercard for violating data storage rules of 2018, which require foreign card networks to store India-related payments data only in the country.

Here are some key points related to the entire development:

  1. RBL Bank said on Thursday it has signed up Visa Inc for its credit cards, a day after RBI decided to bar Mastercard Inc from adding new domestic customers in the country.

  2. RBL Bank informed that it plans to issue new credit cards under the Visa network in eight to 10 weeks following a technology integration.

  3. The decision by RBL Bank has come in the aftermath of RBI barring payments company Mastercard from adding new domestic customers in India from July 22, onwards.

  4. The central bank took the action against Mastercard for violating its data storage rules of 2018 that require foreign card networks to store Indian payments data only in the country.

  5. Mastercard has been barred from adding domestic customers under all the three categories of debit, credit as well as prepaid cards. 

  6. RBI however said that its decision will not have any impact on Mastercard’s existing customers and the company will have to inform all card issuing banks as well as non-banks to conform to RBI’s directions.

  7. The central bank said that despite being given considerable time and adequate opportunities given to Mastercard, it was found to be non-compliant with its directions on storage data rules.

  8. Mastercard said it was “disappointed” with the decision and claimed that it had provided regular updates on its compliance with the rules since 2018.

  9. Earlier in April this year, RBI had also barred American Express and Diners Club from adding new domestic credit card customers from May 1, 2021 onwards.

  10. The two payments companies were also found violating RBI’s storage data rules.

Author: desi123

Desi123.com is an online news portal that aims to provide the latest trendy news for Asians living in Asia and around the World.

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