The Reserve Bank has restricted American Express Banking Corp and Diners Club International Ltd from onboarding new home customers onto their card networks from May 1 for violating information storage norms.
The order is not going to impression the present customers of those two entities, the central financial institution stated in an announcement on Friday.
American Express Banking Corp and Diners Club International Ltd are Payment System Operators authorised to function card networks within the nation underneath 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 found non-compliant with the directions on Storage of Payment System Data,” the RBI stated.
The supervisory motion, it added, has been taken in train of powers vested in RBI underneath the PSS Act.
In April 2018, all fee system suppliers had been directed to make sure that inside a interval of six months all the information (full end-to-end transaction particulars/data collected/carried/processed as a part of the message/fee instruction) referring to 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 inside the timelines specified.
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