Delhi ,July 17: The Reserve Bank of India (RBI) had said in a statement that a ban on Mastercard would be imposed effective from June 22. The reason behind the ban of this card was cited as non-compliance with local data storage guidelines. This big impact is going to be felt by at least five private banks, as well as non-bank lenders and the card-issuing company itself. As per a Nomura Research report, the banks that will be the most affected by this change are the RBL Bank, YES Bank and Bajaj Finserv as all the credit-card schemes that these lenders offer, come under the Mastercard.
A little further down the spectrum, Induslnd Bank, ICICI Banks and Axis Bank will be the second most affected as they have around 35 to 40 per cent of their credit card schemes tied to the banned card, according to the report. The exception to this category is HDFC Bank. Even though this lender has around 45 per cent of its credit card schemes under Mastercard, it will not feel the impact as much, since it is already restricted as a bank from issuing new cards. Another major bank, the State Bank of India (SBI), will also have to deal with the fallout, though minimal. The bank only has around 10 per cent of its schemes coming under the Mastercard ambit.
The ban on the Mastercard will only apply to banks and new customers from July 22 onward (Representative Image) The ban on the Mastercard will only apply to banks and new customers from July 22 onward (Representative Image)
Banks with Mastercard co-branding on their debit, credit or pre-paid cards will not be allowed to issue them from July 22 onwards to new customers.
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