The Reserve Bank of India (RBI) said in a statement that the ban on MasterCard, a leading payment gateway company, will come into effect from July 22. The Reserve Bank of India has imposed restrictions on the issuance of new Master Cards due to non-compliance with local data storage regulations.
The Reserve Bank of India (RBI) said in a statement that the ban on MasterCard, a leading payment gateway company, will come into effect from July 22. The Reserve Bank of India has imposed restrictions on the issuance of new MasterCards due to non-compliance with local data storage regulations. However, the RBI's restrictions on MasterCard will not have a major impact on the five private sector banks, non-bank financial institutions and card issuers. Leading global brokerage firm Nomura Research has reported that RBL, Yes Bank and Bajaj FinServe will not be affected the most. All credit-card schemes offered by these three financial institutions are subject to MasterCard so the issuance of new cards will not be much affected due to the ban imposed by the RBI.
Nomura Research reports that Indus Ind Bank, ICICI Bank and Axis Bank will also be affected. Credit card schemes offered by these three banks cover up to 35-40% of MasterCard. This will not have much of an impact on these banks. HDFC Bank will not be affected. In fact, 45% of HDFC credit card plans rely on MasterCard. But this bank is not allowed to issue new cards. This will have no effect on HDFC even if the RBI stops issuing new MasterCards.
It will not affect even the most prominent SBI in India. According to Nomura Research, SBI Bank offers only 10 per cent schemes under MasterCard. This will have a very limited impact on SBI Bank. Another major problem arises due to the RBI decision. The issuance of co-branded credit cards affiliated with MasterCard should be discontinued. Banks like SBI, Axis Bank, RBL etc. which have co-branded credit cards will have to make huge changes in their card branding.
Problems with MasterCard Debit and Credit Cardholders?
RBL has made it clear that cardholders who already use a Master Credit or Debit card will not have any problems. The ban was imposed only on the issuance of new cards so there will be no problems for those who already have an old MasterCard. What services are now available through MasterCard will be available even after the ban comes into effect. Customers who decide to take a new credit, debit, prepaid MasterCard .. They will have trouble issuing new cards. The ban will also affect banks issuing new cards.
0 Comments