Mastercard & Visa have requested an extension of the RBI deadline & relaxation of rules, citing operational difficulties & security concerns.
New Delhi: Visa Inc. and Mastercard Inc. are among international payment companies set to miss a Monday deadline for certifying their compliance with data localization requirements set by India’s central bank, people familiar with the matter said.
The two credit card giants have requested an extension of the deadline and a relaxation of the rules, citing operational difficulties and security concerns, the people said, asking not to be named as the information is not public.
In April, the Reserve Bank of India issued instructions that payments data should be stored within the country, in order to ensure better monitoring, and told all system providers to comply within six months. It joined regulators in Russia and China which have similar requirements.
A number of foreign firms have entered the Indian payments business in recent years, lured by a market which is expected to grow to $1 trillion by 2023, up from $200 billion currently, according to estimates from Credit Suisse Group AG.
Mumbai-based representatives for Mastercard and Visa didn’t immediately respond to emails and phone calls requesting comment. A spokesman for RBI didn’t respond to an email. – Bloomberg