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RBI bars American Express, Diners Club from onboarding new domestic credit card customers

RBI said American Express Banking Corp and Diners Club International Ltd were found to be non-compliant with the directions on storage of payment system data.

twitter-logoBusinessToday.In | April 23, 2021 | Updated 19:21 IST
RBI bars American Express, Diners Club from onboarding new domestic credit card customers
RBI had asked payment system providers to ensure that the entire data relating to payment systems operated by them is stored in a system only in India.

The Reserve Bank of India has barred American Express and Diners Club from onboarding new domestic credit card customers from May 1 for violating the central bank's norms on storage of payment systems data.

Through a circular in April 2018, RBI had asked payment system providers to ensure that within a period of six months the entire data (full end-to-end transaction details/information collected/carried/processed as part of the message/ payment instruction) relating to payment systems operated by them is stored in a system only in India.

Besides, they were also required to report compliance to RBI and submit a board-approved System Audit Report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified.

However, RBI said American Express Banking Corp and Diners Club International Ltd were found to be non-compliant with the directions on storage of payment system data.

Accordingly, RBI "imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021".

However, the order will not impact the existing customers of the company.

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