Mumbai: The Reserve Financial institution has restricted American Categorical Banking Corp and Diners Membership Worldwide Ltd from onboarding new home clients onto their card networks from Might 1 for violating information storage norms.
The order won’t influence the present clients of those two entities, the central financial institution stated in a press release on Friday. American Categorical Banking Corp and Diners Membership Worldwide Ltd are Cost System Operators authorised to function card networks within the nation below the Cost and Settlement Methods Act, 2007 (PSS Act).
The RBI has imposed the restrictions on American Categorical Banking Corp and Diners Membership Worldwide by an order dated April 23, 2021. “These entities have been discovered non-compliant with the instructions on Storage of Cost System Information,” the RBI stated. The supervisory motion, it added, has been taken in train of powers vested in RBI below the PSS Act.
In April 2018, all cost system suppliers had been directed to make sure that inside a interval of six months your entire information (full end-to-end transaction particulars/info collected/carried/processed as a part of the message/cost instruction) referring to cost programs operated by them is saved in a system solely in India. They had been additionally required to report compliance to RBI and submit a board-approved System Audit Report (SAR) performed by a CERT-In impanelled auditor throughout the timelines specified.