Mastercard Will Begin Deleting Indian Cardholder Data From Global Servers

Mastercard made a proposal to the Reserve Bank to begin deleting Indian cardholders' data from the global servers. It also warns that this will weaken the security and safety of users for a period of time.

In April, the Reserve Bank of India (RBI) issued a new regulation. It requires payment companies to keep all information relating to transactions involving Indian citizens only on computers in the country. This regulation was officially entered into force on 16 October.

In order to comply with RBI's localization requirements, all new Indian transaction data from October 16 will be archived at the MasterCard technology center in Pune.

Mastercard has proposed to the RBI that it will delete all transaction data in a specific date. At the same time, it also says it will affect transaction disputes if such data is needed in the future.

Mastercard's offer to RBI is to remove all information related to Indian users, including card numbers, transaction details, etc. in all parts of the world except India. All Indian data will be stored locally and nowhere else. However, the leaders of Mastercard also warned of the danger and impact of deleting this data.

Porush Singh (India and Division President, South Asia, Mastercard) says that none of the 200 active Mastercard countries have received requests to remove data from global servers like India. He emphasized that no country would require the company to delete data from the global server because it would likely weaken its safety and security for a while. Singh also adds that deleting data is not like pushing a button.

The localization of data requires the collection, processing, and storage of data on population in the country prior to international transfer. Often it will only be delivered once all data protection laws or local privacy laws have been met.

Singh said that from October, the MasterCard will begin storing a true copy of the data under the RBI directive. Mastercard says data localization costs will be "incremental".

The company plans to follow the schedule it has given RBI. Singh said Mastercard is seeking any amnesty in complying with this rule. The company does not want to wait for anything, because the company has made the earliest date that it can do this, and it also outlines possible effects for the RBI to consider.

When people charge a fee, disputes can occur, and to resolve the issue, they need the parties involved. The company has made an offer to the RBI to look into the issue and is still waiting for a confirmation from them.

Erasing of Indian customer data at global servers has not yet been decided as the RBI has not yet issued a confirmation with Mastercard. The company has given a specific date that they will start deleting those data on a regular basis.