The two payment system providers have been penalised for violating data storage norms
The Reserve Bank of India has restricted American Express Banking Corp and Diners Club International Ltd from on-boarding new domestic customers onto their card networks from May 1 for violating data storage norms.
The order will not impact the existing customers of these two entities, the central bank said in a statement on Friday.
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 RBI has imposed the restrictions on American Express Banking Corp and Diners Club International by an order dated April 23, 2021.