RBI bans Mastercard from onboarding new customers on its network from July 22

Current GK ( Master) Banking Awareness

The Reserve Bank of India (RBI) has barred global card player Mastercard Asia/Pacific Pte Ltd from onboarding new domestic customers on its network with effect from July 22, 2021, over non-compliance with local data storage regulations.
This decision is set to affect the card issuing banks and credit card issuers that have co-branded credit cards with vendors on the Mastercard platform or exclusive tie-ups with the payment network for their own credit card issuance.
Presently, only RBL Bank and YES Bank have exclusive tie-ups with Mastercard.
However, following this decision, the RBL Bank has now entered into an agreement with Visa Worldwide Pte. Limited to issue credit cards enabled on the Visa payment network.
RBL Bank is the fifth largest credit card issuer in the country, having approximately 5 percent market share.