{"id":119402,"date":"2021-07-17T19:59:57","date_gmt":"2021-07-17T14:29:57","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=119402"},"modified":"2021-07-20T16:51:42","modified_gmt":"2021-07-20T11:21:42","slug":"curbs-on-foreign-card-firms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/curbs-on-foreign-card-firms\/","title":{"rendered":"Curbs on foreign card firms"},"content":{"rendered":"<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/foreign-card-payment-network-curb-on-new-customers-rbi-restrictions-7408619\/\"><strong>Indian Express<\/strong><\/a><\/p>\n<p><strong>Relevance<\/strong> &#8211; Data localization is being taken seriously in India. Aspirants must have knowledge of all aspects linked to it.<\/p>\n<p><strong>Synopsis: <\/strong>Recently, the Reserve Bank of India has barred three foreign card payment network companies\u00a0 (Mastercard, American Express, and Diners Club) from taking new customers on board <strong>over the issue of storing data<\/strong> in India.<\/p>\n<h5><strong>Background:<\/strong><\/h5>\n<ul>\n<li>The RBI has stated that the <strong>payment systems need closer monitoring<\/strong> in the wake of the rising use of digital transactions.<\/li>\n<li>According to RBI data, there were 90.23 crore debit cards and 6.23 crore credit cards in India as of May 2021.<\/li>\n<li>As per the <strong>RBI circular on Storage of Payment System Data<\/strong> 2018, all system providers were directed to ensure that within six months the entire data relating to payment systems operated by them is stored in a system only in India.<\/li>\n<li>They were also required to <strong>report compliance to the RBI<\/strong>.<\/li>\n<\/ul>\n<h5><strong>Meaning and Implication of this move of RBI:<\/strong><\/h5>\n<ul>\n<li><strong>Non-compliance behind barring these companies from enrolling new customers:<\/strong>\n<ul>\n<li>On July 14, the RBI <strong>imposed restrictions on Mastercard Asia Pacific<\/strong>\u00a0from onboarding new domestic customers in India from July 22.<\/li>\n<li>It cited <strong>non-compliance with guidelines<\/strong> for the storage of data in India.<\/li>\n<li>The RBI said it had given almost three years for Mastercard to comply with the regulatory directions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Stakeholders affected by this move:<\/strong>\n<ul>\n<li><strong>Existing customers will not be affected, and<\/strong>\u00a0they can continue using these cards.<\/li>\n<li>However, <strong>banks and non-banking finance companies<\/strong> that were planning to use these payment networks won\u2019t be able to use these platforms to enroll new customers until the RBI lifts the ban.<\/li>\n<li>This leaves only <strong>Visa Inc and homegrown NPCI\u2019s RuPay as payment providers<\/strong> under no restrictions.<\/li>\n<li>In the near term, there will be no impact on card issuers, but there could be a medium-term impact if this situation persists.<\/li>\n<li>Banks that were planning for new customers through Mastercard will have to look at Visa for enrollment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source: Indian Express Relevance &#8211; Data localization is being taken seriously in India. Aspirants must have knowledge of all aspects linked to it. Synopsis: Recently, the Reserve Bank of India has barred three foreign card payment network companies\u00a0 (Mastercard, American Express, and Diners Club) from taking new customers on board over the issue of storing&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/curbs-on-foreign-card-firms\/\">Continue reading <span class=\"screen-reader-text\">Curbs on foreign card firms<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[8462,221,216],"class_list":["post-119402","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-curbs-on-foreign-card-firms","tag-economy","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704637994},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/119402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=119402"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/119402\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=119402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=119402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=119402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}