RBI restricts American Express, Diners Club from on-boarding new clients

The Reserve Bank of India (RBI) on Friday imposed restrictions on American Express Banking Corp (Amex) and Diners Club International from onboarding new home clients on to their card networks from May 1.
These entities have been discovered non-compliant with the central financial institution’s instructions on storage of cost system knowledge.
In a press release on its web site, RBI stated the order won’t influence present clients. “The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the PSS (Payment and Settlement Systems) Act.”
Amex and Diners Club are cost system operators authorised to function card networks in India below the PSS Act. The instructions in opposition to these two represent the primary set of penalties meted out for non-compliance with an RBI round on storage of cost system knowledge dated April 6, 2018.
The round directed all cost system suppliers to make sure that inside six months, your complete knowledge referring to cost techniques operated by them is saved in a system solely in India.
These would come with full end-to-end transaction particulars as additionally info collected, carried and processed as a part of the message or cost instruction. FE