Mumbai: The Reserve Bank has restricted American Express Banking Corp and Diners Club International Ltd from onboarding new home prospects onto their card networks from May 1 for violating information storage norms.
The order won’t influence the present prospects of those two entities, the central financial institution stated in a press release on Friday. American Express Banking Corp and Diners Club International Ltd are Payment System Operators authorised to function card networks within the nation beneath the Payment and Settlement Systems Act, 2007 (PSS Act).
The RBI has imposed the restrictions on American Express Banking Corp and Diners Club International by an order dated April 23, 2021. “These entities have been discovered non-compliant with the instructions on Storage of Payment System Data,” the RBI said. The supervisory action, it added, has been taken in exercise of powers vested in RBI under the PSS Act.
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