RBI Restricts American Express, Diners Club from Issuing Cards to New Customers

The Reserve Bank has imposed new restrictions on American Express and the Diners Club. According to the new rules, American Express and Diners Club can no longer issue cards to new customers. This order will not affect the existing customers of these two units.

The Reserve Bank has pressed new restrictions on American Express and Diners Club. According to the new rules, American Express and Diners Club can no longer issue cards to new customers. This order will not affect the existing customers of these two units.

Reserve Bank of India, American Express Banking Corporation and Diners Club International Ltd. has been prohibited from issuing cards to new domestic customers from May 1. This restriction has been imposed for violation of maintenance of data and other information. The central bank said in a statement on Friday that the order would not affect the existing customers of these two units.

American Express Banking Corporation and Diners Club International Ltd. Payment systems are the operators. Both are authorized to operate the card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). The RBI pressed the ban on American Express Banking Corporation and Diners Club International under an order issued on April 23, 2021.

The central bank said, "These units were not following the instructions regarding data and information storage allied to the payment system." It is noteworthy that in April 2018, all service providers correlated with the payment system were asked to ensure that That the data and information related to the payment system operated by them is to be kept within six months in the prescribed system in India. He was also required to notify the RBI about compliance. Along with this, the 'System Audit Report' made by the auditors in the panel of CERT-In (Indian Computer Emergency Response Team) was to be submitted with the approval of the Board of Directors.