From May 1, 2021, onwards the Reserve Bank of India (RBI) has imposed constraints on American Express Banking Corp (Amex) and Diners Club International Ltd from onboarding new domestic customers onto their card networks.
These entities have been found non-compliant with the regulations on the storage of payment system data, said an RBI statement. It added that the order will not impact existing customers.
Amex and Diners Club International Ltd are payment system operators approved to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
The supervisory action has been taken in the operation of powers vested in RBI under Section 17 of the PSS Act.
In terms of the RBI circular on storage of payment system data dated April 6, 2018, all payment system providers were directed to assure that within a period of six months, the entire data describing to payment systems operated by them is stored in a system only in India.
They were also asked to report agreement to the RBI and submit a Board-approved System Audit Report (SAR) carried by a CERT-In empanelled auditor within the timelines stipulated therein.
American Express said in a statement: “We have been in regular dialogue with the Reserve Bank of India about data localisation requirements and have demonstrated our progress towards complying with the regulation.”
“While we’re disappointed that the RBI has taken this course of action, we are working with them to resolve their concerns as quickly as possible. This does not impact the services that we offer to our existing customers in India, and our customers can continue to use and accept our cards as normal,” it added.
Post Your Comments