Exclusive: Indian Mastercard Bans US Trade Authority Called “Draconian” – Email

Texas News Today

File photo: A smartphone with the Mastercard logo is displayed in front of the displayed stock price graph in this figure taken on July 15, 2021. Reuters / Dadoruvik / Illustration / File photo

September 19, 2021

by Aditya Kalra

NEW DELHI (Reuters) – Senior US business executives have personally criticized India’s July decision to ban Mastercard Inc. from issuing new cards, according to US government emails seen by Reuters. He called it a “radical” movement that caused “panic”.

These documents are issued in the United States after the Central Bank of India banned the issuance of new cards for American Express and Diners Club International https://www.reuters.com/article/india-banking-american-express-idUSL4N2MG3I6 were done. April. I am complaining within the government. July Mastercard https://www.reuters.com/world/india/indias-reserve-bank-bans-mastercard-issuing-new-cards-india-2021-07-14.

The Reserve Bank of India has accused the company of violating local data storage regulations. The restriction does not affect existing customers.

According to a government email, the ban on Mastercard (the top payment network in India along with Visa) will go to the RBI when Washington and US officials in India discuss next steps with Mastercard. Including caused a boom in emails.

Two days later, Brendan A. Lynch, deputy assistant secretary for trade for South and Central Asia, said: “We started hearing from stakeholders about the drastic steps the RBI has taken over the past few days.” Written on 16 July. MasterCard announcement.

“Others (Amex, diners) have been affected by similar behavior recently,” Lynch wrote. I asked my Indian colleague to contact central bank contacts “to find out what was going on”.

A spokesman for Lynch, the US Trade Representative and the US Embassy in New Delhi did not respond to requests for comment. The US government has not publicly commented on the Mastercard ban.

RBI did not immediately react.

“We have had a very constructive partnership with the Government of India and the United States over the past few weeks, and we are grateful for their support,” a Mastercard spokesperson told Reuters. This involved talks with the RBI, and Mastercard is resolving the situation quickly, so it’s “going well,” he said.

“Terror”, “Full Coat Press”

Mastercard counts India as a key growth market. In 2019, he said he was “enthusiastic” to India, a country that made significant investments and built research and technology centres.

The Mastercard ban rattles the sector as Indians fear hurting their bottom line as they struggle to quickly partner with new networks to offer their cards.

RBI took action against Mastercard as it turned out to be “non-compliance” with the 2018 rules, despite “considerable time and ample opportunity”.

Rules requiring Indian payment data to be stored locally for “free supervisory access” to foreign card networks fail US corporate lobbying and dent trade relations between New Delhi and Washington. This was done after the permission was granted.

Mastercard says it was “disappointed” by the decision. The company told Reuters that it has submitted an additional audit report https://www.reuters.com/world/india/mastercard-submits-new-audit-india-after-ban-over-data-handling-2021-07- Done. Before the ban came into force on July 22, the RBI had to pay 30.

Emails from the US government indicated that there was hope that things could be sorted out earlier.

In one instance, Lynch told a colleague that he understood that “the RBI has the information it needs and expects it to respond appropriately.” But as the ban draws closer, “I am confident that the panic will resume if the RBI does not change course,” he wrote.

A few days later, he wrote that MasterCard continued to “have full court coverage” in Washington.

(Reporting by Aditya Kalra, New Delhi, Edited by William Mallard)

Exclusive: Indian Mastercard Bans US Trade Authority Called “Draconian” – Email

source link Exclusive: Indian Mastercard Bans US Trade Authority Called “Draconian” – Email


Please enter your comment!
Please enter your name here