RBI restricted American Express and Diners Club from adding new customers from May 1
The Reserve Bank of India (RBI) has restricted American Express and Diners Club International Ltd. from adding new domestic customers from May 1 for not complying with data storage rules. The central bank says its order won't impact existing customers. The two companies have been found guilty of not complying with the rules on 'Storage of Payment System Data', according to a statement issued by the central bank.
It cracked the whip on the two companies in the form of supervisory action after the two entities were found not following the RBI's directions on ensuring that data of transactions, payments, instructions and customer information collected by them is stored in a system within India.