ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Source: TOI
Synopsis: Mastercard Asia has been ordered by RBI to refrain from taking on new customers as it failed to fulfil its obligations under the local data storage rules.
| Also Read: Mastercard can’t issue new cards from July 22: RBI |
Issues involved
- Impact on the payments market: India’s retail payments landscape has transitioned to contactless payments, and cards are slowly losing relevance. Cards have a 3% market share and Mastercard is estimated to account for around one-third of those transactions. Therefore, RBI’s move, especially since renewal of existing Mastercards are not affected, won’t be really market disruptive
- This data localisation requirement is also consistent with India’s Personal Data Protection Bill (PDP) that was introduced in Parliament 19 months ago. The bill was referred to a joint parliamentary committee and its report is still under preparation.
Way forward
The original bill covered localisation and stated that some critical data shall be processed only in India. PDP cannot exist in isolation. India has globally competitive firms in data processing and PDP’s structure will have a ripple effect on them. A benchmark could be the EU’s GDPR which allows transfer of data to non-EU-based firms provided they follow the same standards.
| Also Read: Personal Data Protection Bill and issues around data localisation |
