RBI restricts American Express, Diners Club from adding new customers – Times of India

RBI restricts American Express, Diners Club from adding new customers – Times of India


The central bank informed that the action will not impact any existing customers. (File photo)

NEW DELH: The Reserve Bank of India (RBI) on Friday imposed restrictions on American Express Banking Corp and Diners Club International from onboarding new customers on their card network from May 1.
The supervisory action was taken after both entities were found non-compliant with directions on storage of payment data system.
Both American Express and Diners Club International are payment system operators authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
However, the central bank informed that the action will not impact any existing customers.
In a circular issued on April 6, 2018, the Reserve Bank had directed all payment system providers to ensure within six months that all data relating to payment systems operated by them is stored in a system only in India.
This data should include the full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction, the RBI had said.
They were also required to report compliance to RBI and submit a Board-approved system audit report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified therein.

FacebookTwitterLinkedinEMail



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *