US trade official called India’s Mastercard ban ‘draconian’-emails

A senior US trade official privately criticised India’s July decision to ban Mastercard Inc (MA.N) from issuing new cards, calling it a “draconian” move that caused “panic”, according to US government emails seen by Reuters.

The documents show frustration within the US government after India’s central bank banned new card issuance by American Express (AXP.N) and Diners Club International in April, then took similar action against Mastercard in July.

The Reserve Bank of India accuses the companies of breaking local data-storage rules. The bans do not affect existing customers.

The ban on Mastercard – a top payment network in India alongside Visa (V.N) – triggered a flurry of emails between U.S. officials in Washington and India as they discussed next steps with Mastercard, including approaching the RBI, the government emails show.