If the debit or credit card of MasterCard is kept in the pocket, then know how it will affect you due to the ban
MasterCard Debit and Credit Card: MasterCard and Visa cards dominate the credit card market, but the ban on MasterCard will increase the importance of Visa and Rupay cards.
The decision taken by the Reserve Bank of India not to issue the new MasterCard created a big stir in the credit card market. However, this decision will not affect the old cardholders much. With Visa and MasterCard being the dominant force in the credit card business, the importance of Visa will increase further after MasterCard is banned. Let us know what is the share of Visa, Mastercard and Rupay in the credit card market in the country …
The central bank RBI has taken a big decision on Wednesday regarding the issuance of new debit and credit cards by banks and micro finance companies. RBI has banned the issuance of MasterCard. Now banks will not be able to issue Master Debit and Credit cards to new or old customers. This decision of RBI will come into effect from July 22.
Actually, the debit and credit cards issued by the banks are made by the companies. One of these is Mastercard Asia/Pacific Pte Ltd (Mastercard). Mastercard is a payment system operator authorized under the PSS Act to operate the card network in the country.
Reserve Bank of India takes supervisory action on Mastercard Asia / Pacific Pte. Ltd.https://t.co/Awx9t2Ssdt
— ReserveBankOfIndia (@RBI) July 14, 2021
The Reserve Bank of India, acting on Wednesday, Mastercard Asia / Pacific Pte Ltd, has banned the addition of new domestic debit, credit or prepaid customers to its card network with effect from July 22.
Share of companies in the credit card market
Visa – 45%
MasterCard – 33%
RuPay – 20%.
Amex – 3%
Source- 2020 Payments and E-Commerce Report, Asia Pacific PPRO
How many people have debit and credit cards?
Many banks in the country issue MasterCard, Visa and RuPay cards. However, after the ban on the new MasterCard, the importance of Visa and Rupay cards will increase more among customers and banks. So far, credit cards have been issued to 6.25 crore people in the country, that is, so many cards are in circulation. On the other hand, when it comes to debit cards, 90 crore debit cards are in circulation.
Why did RBI put a ban on Mastercard?
RBI has taken this action on Mastercard due to non-compliance of data storage rules. Mastercard was not storing the data of its customers in India, due to which this decision was taken. For this the company was given ample time and opportunity. Although many companies opposed it in the year 2018, but later agreed to follow the rules.
Will it affect customers?
After the decision of RBI, banks will not be able to issue new master cards. However, the Reserve Bank has clarified that the old Master Card will continue. This means that all the services on their debit and credit cards will continue as before. The RBI order will not have any impact on existing customers of MasterCard. The statement issued by the RBI said that ‘Mastercard’ will advise all banks and non-banks issuing debit and credit cards to follow these instructions.
What has Mastercard clarified?
On this decision of RBI, Mastercard clarified that they are disappointed with this decision of the central bank. The company said that it is fully committed to its legal and regulatory obligations. The company said that it is ready to take forward the Digital India vision of the government. Also committed to working with clients and partners.
RBL’s troubles increased
At present, RBL issues credit cards only on the MasterCard network. However, the bank has entered into an immediate agreement to issue credit cards on the Visa payment network. This new agreement is expected to take 8-10 weeks. Explain that RBL issues one lakh new credit cards every month, which will now be delayed.
Know about MasterCard
You use a debit card or credit card to make purchases, withdraw cash from ATMs, make online payments. You must have seen MasterCard, Visa Card and RupayCard written on those cards. These are the three companies that issue ATMs and credit cards.
MasterCard is an American company. Its headquarter is in New York. This company was established in the year 1979 for inter bank transactions. In the early times, it was associated with financial services only in American banks. It currently provides service in about 160 countries. Under this, many types of cards are issued.