American Express Banking: From May 1, these two customers will not be able to add new credit card customers in India.
The Reserve Bank of India has banned American Express Banking Corporation and Diners Club International Limited. On April 23, the RBI has banned these two from making new credit card customers in India. This moratorium will be implemented from May 1. Both these banks are accused of not following India’s Law of Land regarding payment system data storage. This order of the Reserve Bank will not have any effect on their existing customers.
American Express Banking Corporation and Diners Club International Limited carry out payment system operations in India. Both these banks do credit card business under the Payment and Settlement Systems Act 2007 (PSS Act) in India. The Reserve Bank has the right of supervision under section 17 of the PSS Act and the Central Bank has exercised this right.
This matter is related to data storage
Talking about the RBI circular regarding payment system data storage, on 6 April 2018, all payment system providers were asked to store every data related to customers and transactions within India within the next six months. In this, all information about end-to-end transaction details, all the information received through the message, payment instruction was to be stored in India. Both these payment system providers failed, due to which the Reserve Bank has decided to ban the business.
