Case Brief
RBI issued an order dated April 23, 2021 restricting American Express Banking Corp. and Diners Club International Ltd. from onboarding new domestic customers onto their card networks from May 1, 2021. The action followed RBI’s finding that the entities had not complied with its directions on storage of payment system data. RBI noted that payment system providers were required to store the full end-to-end transaction data in India and to report compliance along with a board-approved System Audit Report. The action was taken under Section 17 of the Payment and Settlement Systems Act, 2007.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Payment entity
- Action Type
- Business restriction