Mastercard has reportedly spoken out against India’s data localisation rules, stating they may hinder its ability to detect fraud.
The payment card giant believes the strict data rules could hinder its efforts in identifying instances of fraud or money laundering within the country, a number of reports in the media claim.
Last year, the Reserve Bank of India ordered payment companies to keep data exclusively stored on local servers. Only six months were given to companies to make the necessary changes to systems, which typically needed international companies to build new storage infrastructure in the company.
Mastercard was among those to request an extension on this deadline and is reportedly still in the process of meeting compliance.
With these changes, Mastercard believes it removes the ability to see the broader world and identify emerging patterns in fraud.
Mastercard recently acquired Ethoca, a company supporting payment fraud identification and prevention. Ethoca is a global network of banks and merchants which has a goal of boosting trust for consumers with transactions.
Earlier in the year, the Reserve Bank of India released guidelines around the tokenisation of debit, credit, and prepaid card transactions. The new rules have permitted card payment networks to offer card tokenisation services to third-party app providers, or a token requestor, as long as certain conditions are met, such as security.
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Copyright © 2018 RegTech Analyst
