The Reserve Bank of India (RBI) has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from onboarding new domestic customers onto their card networks from May as These entities have been found non-compliant with the directions on storage of payment system data.

American Express Banking Corp. and Diners Club International Ltd. are payment system operators authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). The supervisory action has been taken in exercise of powers vested in RBI under Section 17 of the PSS Act.

The order will not impact the existing customers of these two entities, the central bank said in a statement on Friday. The RBI has imposed the restrictions on American Express Banking Corp and Diners Club International by an order dated April 23, 2021. "These entities have been found non-compliant with the directions on Storage of Payment System Data," the RBI said.

As per the terms of RBI circular on Storage of Payment System Data of April 6, 2018, 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, or processed as part of the message or payment instruction,  relating to payment systems operated by them is stored in a system only in India.

RBI directs banks to restrict dividend payouts amid second Covid wave

RBI Key points: Spike In Covid, Lockdowns Make Growth Outlook Uncertain

RBI to cancel fraud-hit licence; issues show cause