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MasterCard Card Holders: Data Localisation Rules Can Impact-This Is How?


As per the RBI's guidelines, which has asked global card companies to store information related to Indian card bearers on transactions in India only, it has come to notice that at any possible data in future the company MasterCard will start deleting data of its Indian customers from its global servers.

MasterCard Card Holders: Data Localisation Rules Can Impact-This Is How?

In October 2018, the company informed that its storing new transaction data in its technology centre in Pune after the RBI's rule on data localization.

It is to be furthermore noted that the company has also warned that in the long run, deleting of information on global servers could also mean safety and security issues.

Also, with regard to adhering to such a move, Mastercard has also come out with a date from which the data shall be deleted across global servers. Also, it has been asserted by the company chief that the deadline will be followed by the company.

Further the chief is quoted as saying, "The proposal we have given (to RBI) is that we will delete it (data) from everywhere else, whether it is the card number, transaction details. The data will only be stored in India ... We will start deleting that...," Singh said.

I do not want to wait. As far as we are concerned, we have said this is the date earliest we can do... And this is going to impact in the longer term which you need to consider," he added.

But the situation is now dependent on the RBI's approval and as soon as the central bank gives a go-ahead, the card company will begin with the process of deleting details from its global servers.

According to Singh, the process of deleting data on cards including card number, transaction details is not simple like "pressing a button". He said that the process of deletion requires multiple layers and stakeholders. "This is because people can charge you...Dispute the transactions, that all in process ... It needs multiple players, multiple stakeholders. We have given them (RBI) a proposal and we are waiting for them to confirm back," he said.


When asked what would be the cost of data localisation, Singh said there will be "incremental cost".

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