The Reserve Bank of India (RBI) restricted American Express Banking Corp and Diners Club from on-boarding new customers from May 1, PTI reported.
RBI in its order dated April 23, 2021, imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new home customers onto their card networks from May 1, 2021. These entities have been discovered non-compliant with the instructions on Storage of Payment System Data. This order is not going to affect present customers.
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 supervisory motion has been taken in train of powers vested in RBI beneath Section 17 of the PSS Act.
In phrases of RBI round on Storage of Payment System Data dated April 6, 2018, all Payment System Providers had been directed to make sure that inside a interval of six months your complete information (full end-to-end transaction particulars / data collected / carried / processed as a part of the message / fee instruction) regarding fee methods operated by them is saved in a system solely in India.
They had been additionally required to report compliance to RBI and submit a Board-approved System Audit Report (SAR) performed by a CERT-In empanelled auditor throughout the timelines specified therein.
Meanwhile, American Express mentioned it has been in common dialogue with the RBI concerning information localisation necessities and has demonstrated its progress in direction of complying with the rules.
“While we’re disenchanted that the RBI has taken this plan of action, we’re working with them to resolve their issues as shortly as doable.
This doesn’t affect the providers that we provide to our present customers in India, and our customers can proceed to make use of and settle for our playing cards as regular,” the corporate mentioned.
(With PTI inputs)
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