Daily Management Review

India bans Mastercard from issuing new cards


India's central bank has banned Mastercard from issuing new debit and credit cards to Indian customers. The ban will take effect from 22 July and has no expiry date.

Håkan Dahlström
Håkan Dahlström
"Although much time has passed and the company has been given ample opportunity, we have concluded that Mastercard is not complying with the requirements under the law on retention of payment system data," the Central Bank of India said. The new restrictions will not affect those already using Mastercard cards.

According to British payments startup PPRO, Mastercard made 33% of total payments in India in 2021. In 2019, the company promised to invest $1 billion to expand its business in India.

Domestic payment data retention requirements have been in place since 2018. But US companies do not want to comply with these rules. They insist it adds too much to the cost of doing business in India.

Mastercard became the third payment system to be blocked by the Central Bank of India in 2021. Previously, American Express and Diners Club received the same punishment.

source: bbc.com