Mastercard has been ordered from taking in new customers and issuing new cards in India due to their failure of compliance to the country's regulation as to the way the data should be stored.
Authorities have said that the company violated the rules and was given enough time to comply with the new regulation. The company has been banned from issuing new debit, credit or prepaid cards, according to the Reserve Bank of India (RBI). It did not stipulate how long the restrictions would last.
In a statement Wednesday, the central bank said that Mastercard (MA) had been given "considerable time and adequate opportunities" to comply with a mandate announced in 2018.That measure requires all payment providers to store data on Indian users and transactions only on locally based servers.
Companies were given six months to comply with the mandate at the time. The RBI didn't immediately respond to a request for comment about why its action against Mastercard was coming now. In its order Wednesday, the RBI said that Mastercard should direct all card-issuing banks "to conform" to the new restrictions.