RBI bars Mastercard from acquiring new customers in India from July 22
Mumbai, Jul 14: The Reserve Bank on Wednesday barred Mastercard Asia Pacific from onboarding new credit, debit and prepaid card customers with effect from July 22 as it failed to comply with data storage norms.
The supervisory action will not impact existing customers of Mastercard, the Reserve Bank of India (RBI) said.
Taking action against Mastercard, RBI said, "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".
According to RBI, the directions will not impact existing customers of Mastercard. "Mastercard shall advise all card issuing banks and non-banks to conform to these directions".
In terms of its circular on Storage of Payment System Data on April 6, 2018, all system providers were directed to ensure that within a period of six months the entire data relating to payment systems is stored only in India, as per the central bank.
Mastercards becomes the third major Payment System Operator on which restrictions have been imposed for non-compliance with RBI's direction on Storage of Payment System Data.
Earlier, RBI had restricted American Express Banking Corp and Diners Club International Ltd from onboarding new domestic customers on to their card networks from May 1 for violating data storage norms.
In April 6, 2018, the RBI had directed all Payment System Providers to ensure that within a period of six months the entire data (full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system 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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Karnataka to approach SC seeking permission to continue MGNREGA
Bengaluru (PTI): The Karnataka Cabinet on Thursday decided to approach the Supreme Court seeking permission to continue implementation of MGNREGA in the state, contending that the Centre had repealed the rural employment guarantee law without consultation and failed to put in place any alternative mechanism under the VB-G RAM G Act.
Briefing reporters after the Cabinet meeting, Karnataka Law and Parliamentary Affairs Minister H K Patil said the state would immediately move the apex court seeking permission to prepare and implement the annual action plan for rural employment works, while also challenging what it described as an infringement on the constitutional rights of states.
The parliament passed VB-G RAM G in December that replaces MGNREGA.
Patil explained that the Cabinet decided to approach the court seeking permission for the State Government to prepare an action plan in this regard. Since the Centre’s stand interferes with the constitutional rights of state governments, the Cabinet has also decided to challenge this issue before the appropriate court
“There are two points here. One is that they have come in the way of our constitutional right of providing the right to work. That has been halted, and, therefore, the State Government has decided to approach the Supreme Court. The second point is that the Government of India has not provided any alternative,” the Minister said.
The Central Government has not yet issued a notification to implement the VB-G RAM G Act, nor has it made any alternative arrangements and hence continuing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is unavoidable in the public interest, the Minister said.
“Therefore, in the interest of the public, farmers and agricultural labourers, we must continue MGNREGA. For that purpose, the Cabinet has decided to approach the court seeking permission for the State Government to prepare the action plan for this year,” he added.
The Minister also said the Centre had only permitted continuation of pending and spillover MGNREGA works without releasing grants or announcing a fresh action plan.
“The Centre itself has said that pending, spillover and half-done MGNREGA works can continue. That means MGNREGA is actually still functioning in practice. But there is no new action plan,” he said.
Patil said the state had already passed a resolution on the issue, while Chief Minister Siddaramaiah had written to the Prime Minister and the Rural Development Minister had held discussions with Union Ministers.
Replying to questions, the minister said the state would move court “as immediately as possible.”
He clarified that the state was seeking permission to formulate and implement this year’s action plan under the existing framework.
“What we are asking the Supreme Court is to allow us to have the action plan for this year and implement it,” he said.
The Cabinet also held detailed discussions on the final report submitted by the State Education Policy Commission headed by former UGC chairman Professor Sukhadeo Thorat.
Patil said a Cabinet sub-committee would be constituted to examine the report and recommend measures for implementation.
“No decision has been taken yet. The Cabinet sub-committee will recommend what should be accepted and what should be modified,” he said.
He said the report comprised around eight volumes and covered issues relating to financial implications, human resources, curriculum reforms, deemed universities, unitary universities and newly established universities. The Chief Minister has been authorised to constitute the sub-committee.
The Cabinet also approved the Karnataka Motor Transport and Other Related Workers’ Social Security and Welfare Amendment Bill, 2026, transferring welfare administration of transport-related workers from the Labour Department to the Transport Department.
The Cabinet further approved establishment of three new industrial estates in Kalaburagi, Yadgir and Surpur under the Karnataka State Small Industries Development Corporation and Kalyana Karnataka Region Development Board schemes at an estimated cost of Rs 200 crore.
The Cabinet also approved amendments to Karnataka Civil Services (General Recruitment) Rules, 2026, providing two per cent reservation in state civil services appointments for sportspersons.
