RBI stops Diners Club and American Express from making new credit card customers from May 1
Mumbai/IBNS: Reserve Bank of India (RBI) has banned credit card companies Diners Club International and American Express from making new customers in India from May 1, 2021.
RBI issued this order after these companies failed to comply with its directions on storage of payment system data.
"In terms of RBI circular on storage of payment system data dated, all payment system providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details/information collected/carried/processed as part of the message/payment instruction) relating to payment systems operated by them is stored in a system only in India. They were also required to report compliance to RBI and submit a voard-approved system audit report (SAR) conducted by a CERT--In empanelled auditor within the timelines specified therein," RBI said.
The new order will not impact the existing customers.
As per data till February last, American Express has 1.56 million credit cards outstanding in India being the second largest foreign lender in India after Citibank.