scorecardresearch
Follow Us:
Tuesday, May 11, 2021

RBI restricts American Express, Diners Club from on-boarding new customers

These entities have been found non-compliant with the central bank’s directions on storage of payment system data.

By: ENS Economic Bureau | Mumbai |
April 24, 2021 4:19:08 am
Reserve Bank of India, Sensex, G-SAP auction, business news, economy news, indian express economy newsIn a statement on its website, RBI said the order will not impact existing customers.

The Reserve Bank of India (RBI) on Friday imposed restrictions on American Express Banking Corp (Amex) and Diners Club International from onboarding new domestic customers on to their card networks from May 1.

These entities have been found non-compliant with the central bank’s directions on storage of payment system data.

In a statement on its website, RBI said the order will not impact existing customers. “The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the PSS (Payment and Settlement Systems) Act.”

Amex and Diners Club are payment system operators authorised to operate card networks in India under the PSS Act. The directions against these two constitute the first set of penalties meted out for non-compliance with an RBI circular on storage of payment system data dated April 6, 2018.

The circular directed all payment system providers to ensure that within six months, the entire data relating to payment systems operated by them is stored in a system only in India.

These would include full end-to-end transaction details as also information collected, carried and processed as part of the message or payment instruction. FE

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement
X
x