Reserve Bank of India (RBI) has blocked issuance of new credit, debit and prepaid cards to MasterCard Asia-Pacific. The order is effective July 22. With this decision by the RBI, it will be difficult to issue new credit cards to banks connected to the MasterCard network. Explain that banks offer MasterCard debit and credit cards.
RBL Bank has also been affected by: RBL Bank is also affected by the RBI decision. “The regulator’s decision to issue new credit cards on the MasterCard network is likely to affect” the rate at which our bank’s current issuance of up to one million new credit cards per month, “RBL Bank told the stock exchange. RBL Bank currently offers credit cards only on the MasterCard network.
The bank said Wednesday it has entered into an agreement with Visa Worldwide for the issuance of credit cards enabled on the Visa Payment Network. The bank expects to start issuing credit cards in the Visa payment network soon.
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Why take action on the MasterCard: “Even after giving the company enough time and opportunity, it has failed to follow the guidelines for managing payment system data,” the RBI said. Additionally, MasterCard advises all card issuing banks and non-bankers to follow these instructions.
Earlier, the RBI had blocked American Express Banking Corp and Diners Club International Ltd from adding new domestic customers to their card networks with effect from May 1 for violating data retention standards.