RBI bans American Express and Diners Club from onboarding new domestic credit card customers

0


The Reserve Bank of India (RBI) banned American Express and Diners Club from onboarding new domestic credit card customers from May 1 for violating central bank standards on data storage systems. payment.

In an April 2018 circular, RBI asked payment system providers to ensure that, within six months, all of the data (full details of the end-to-end transaction / information collected / transported) / processed as part of the payment message / instruction) relating to the payment systems they operate is stored in one system only in India.

In addition, they were also required to report compliance to RBI and submit a System Audit Report (SAR) approved by the Board of Directors and performed by an auditor mandated by CERT-In within the specified timeframes.

However, RBI said American Express Banking Corp and Diners Club International Ltd did not comply with payment system data storage instructions.

As a result, RBI “has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. for the integration of new domestic customers into their card networks from May 1, 2021”.

However, the order will not impact the company’s existing customers, he said.

In a statement, American Express expressed disappointment with RBI’s action and said it was working with the central bank to resolve the issue.

“We have engaged in regular dialogue with the Reserve Bank of India on data localization requirements and demonstrated our progress towards regulatory compliance. While we are disappointed that the RBI has taken this step, we are working with them to resolve their issues. concerns as soon as possible. This does not affect the services we provide to our existing customers in India, and our customers can continue to use and accept our cards normally, ”the company said.

Read also : HCL Tech Q4 results: Net profit down 6.1% to Rs 2,962 crore

Read also : COVID-19: Defense Ministry to airlift 23 oxygen plants from Germany


Share.

Leave A Reply