RBI has passed an order regarding the Master card. It is a US-based card used for digital transactions. After this order, no more Mastercard (Credit Cards, Debit Cards, and Prepaid Cards) will be coming up for public use.
The major transaction operator behavior did not match with the data localization and storage norms as a result that RBI has suspended the MasterCard services in India from 22nd July. According to close sources, the existing Mastercard holders should not worry about this matter.
Banking companies are looking over other digital transaction alternatives such as Rupay, and VISA cards to continue the services.
Before Mastercard, RBI has also banned two other payment systems or card operators (American Express Banking Corp & Diners Club International) for the same reason: non-compliance of data localization or data storage.
This suspension will directly affect the banking companies in many ways including the backend operation connectivity and financial investment too. To normalize the situation and facilities new deals, and agreements will be endorsed with alternative digital transaction operator companies. The backend technology integration also needs to be set up but it will take 5+months to get all the processes back on track.
As the Mastercard Credit cards, Debit cards, and Prepaid Cards will not be issued from 22nd July, in addition to this, savings account facilities will also be restricted. Due to this incident, VISA, Rupay, and other digital transaction operators have the opportunity to grow well. Their networks will increase, more and more customers will get engaged with them and access their services.
In India, most of the customers are connected with the SBI, AXIS Bank, HDFC Bank, ICICI Bank, and open their savings account every day. Stay with us for more updates!
