THE RESERVE BANK OF INDIA WILL PROHIBIT MASTERCARD FROM ISSUING NEW DEBIT AND CREDIT CARDS IN INDIA
Mastercard Asia / Pacific Pte Ltd (Mastercard) has been barred from onboarding new domestic debit, credit, or prepaid consumers on its card network by the Reserve Bank of India (RBI). On July 22, Mastercard will no longer be able to issue new cards. The payment system operator was sanctioned for breaking the RBI’s rules on the storage of payment system data.
Existing Mastercard customers will not be affected by this directive. All card-issuing banks and non-banks will be advised to follow these guidelines by Mastercard. Under the PSS Act, Mastercard is a Payment System Operator authorized to operate a Card Network in the country.
The move comes less than three months after the RBI prohibited American Express and Discover Financial Services’ Diners Club International from issuing new cards owing to similar irregularities. The central bank decision in 2018 provoked a ferocious lobbying push from US companies, which claimed the requirements would raise infrastructure costs and harm their global fraud detection platforms, but the RBI rejected the claims.
NOTE OF GUIDANCE FOR BUSINESSES GOING THROUGH THE CORPORATE INSOLVENCY RESOLUTION PROCESS
The Bombay Stock Exchange released a Guidance Note for firms going through the Corporate Insolvency Resolution Process in a circular dated July 9, 2021. The list of events that must be disclosed in regard to CIRP is contained in the LODR Regulations. In addition to the disclosures previously required under the LODR Regulations, the following disclosures will be reported to the Exchange in collaboration with SEBI:
- Prior notice of at least two working days of the date of the hearing at which the NCLT will consider the Resolution Plan.
- The approval of the resolution plan must be disclosed to the Exchange on an instant basis and no later than 30 minutes after the oral pronouncement or otherwise of the Order.
The Resolution Professional shall notify existing holders/investors of listed securities of any impact on areas such as the status of the listing, the value of existing holders’ holdings, write off/ cancellation/ extinguishment of existing equity shares/ preference shares/ debentures, etc. through the Exchange platform, where applicable, without making any payment to such holders.
Companies/Resolution Professionals should follow the provisions of the LODR Regulations and keep the resolution plan’s information confidential until they are not placed on the Exchange Platform.