Money & Banking

RBI imposes restrictions on American Express and Diners Club

Our Bureau. Mumbai | Updated on April 23, 2021

The Reserve Bank of India (RBI) has imposed restrictions on American Express Banking Corp and Diners Club International Ltd from on-boarding new domestic customers onto their card networks from May 1.

In an order issued on Friday, the RBI said the aforementioned entities have been found non-compliant with the directions on Storage of Payment System Data. This order will not impact existing customers, it added.

The RBI’s circular on Storage of Payment System Data (April 6, 2018) had directed all Payment System Providers to ensure that the entire data relating to payment systems operated by them is stored in a system in India within six months.

They were also required to report compliance to the RBI and submit a board-approved System Audit Report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified therein.

American Express Banking Corp and Diners Club International Ltd are Payment System Operators (PSOs) authorised to operate Card Networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

The RBI, in a statement, said the supervisory action has been taken in exercise of powers vested in it under Section 17 of the PSS Act.

Besides American Express Banking Corp and Diners Club International Ltd, India has three other card payment networks – MasterCard Asia/ Pacific Pte Ltd, Singapore; National Payments Corporation of India; and Visa Worldwide Pte Limited, Singapore.

 

Published on April 23, 2021

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