RBI restricts American Express and Diners Club from including new prospects from May 1 onwards
The Reserve Bank of India (RBI) has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from enrolling new home prospects onto their card networks from May 1, 2021 onwards. The two entities have been discovered responsible of not complying with RBI’s instructions on ‘Storage of Payment System Data’. The RBI nevertheless made it clear that the order won’t impression present prospects. American Express Banking Corp. and Diners Club International Ltd. are Payment System Operators authorised to function card networks within the nation below the Payment and Settlement Systems Act, 2007 (PSS Act).
The supervisory motion has been taken in train of powers vested in RBI below Section 17 of the PSS Act, a press release issued by the central financial institution mentioned.
According to the phrases of RBI’s round on ‘Storage of Payment System Data’ dated April 6, 2018, all fee system suppliers have been directed to make sure that inside a interval of six months your complete information (together with full end-to-end transaction particulars, data collected, carried, processed as a part of the message and fee instruction) regarding fee techniques operated by them is saved in a system solely in India.
They have been additionally required to report compliance to RBI and submit a Board-approved System Audit Report (SAR) carried out by a CERT-In empanelled auditor throughout the timelines specified therein.
