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Mastercard Is Barred From Issuing New Cards in India

The Reserve Bank of India indefinitely bars Mastercard from issuing new credit or debit cards to domestic customers.
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The Reserve Bank of India indefinitely barred payments company Mastercard  (MA) - Get Mastercard Inc. (MA) Report from issuing new credit or debit cards to domestic customers.

The RBI accused Mastercard of breaking 2018 data storage rules that make foreign card companies store Indian payments data only in India, giving regulators unfettered supervisory access.

“Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data,” RBI Chief General Manager Yogesh Dayal said in a statement.

The news didn’t affect Mastercard shares. They recently traded 387.39, up 0.96%, and have gained 12% in the last six months.

The order is effective July 22. Mastercard didn’t respond to a request for comment from Reuters.

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About three months ago, the RBI forbade American Express  (AXP) - Get American Express Company Report and Discover Financial’s  (DFS) - Get Discover Financial Services Report Diners Club from offering new cards for similar transgressions, the news service reported.

In other Mastercard news, it said Tuesday that it was partnering with mobile carrier Verizon  (VZ) - Get Verizon Communications Inc. Report on global-payments technology. Terms weren't disclosed.

Mastercard will combine its own network with Verizon's 5G connectivity to drive solutions for the global-payments and commerce ecosystem.

The two companies plan to innovate in in contactless shopping and autonomous checkout technology.

They also plan to work on Internet-of-things sensor connectivity to help power fintech, payments and banking.