The Reserve Bank of India (RBI) on Thursday has lifted restrictions on US-based payments technology major Mastercard that was imposed on July 14, 2021, from issuing new credit, debit, and prepaid cards.

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"In view of the satisfactory compliance demonstrated by Mastercard Asia / Pacific Pte. Ltd. with the Reserve Bank of India (RBI) circular dated April 6, 2018, on Storage of Payment System Data, the restrictions imposed, vide order dated July 14, 2021, on on-boarding of new domestic customers have been lifted with immediate effect," the central bank said.

The restrictions were put in place because of the company's failure to comply with local data storage norms that require payments companies to store data related to Indian customers only in the country.

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Mastercard is a payment system operator authorised to operate a card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

RBI's circular on Storage of Payment System Data on April 6, 2018, had directed all system providers to ensure that within a period of six months the entire data relating to payment systems was stored only in India.

They were also required to report compliance to RBI and submit a board-approved System Audit Report conducted by a CERT-In empanelled auditor within specified timelines.

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First Published:Jun 16, 2022 6:50 PM IST