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Saturday, April 24, 2021

Data Localisation – RBI cracks the whip on AmEx and Diners Club

The Reserve Bank of India (RBI) informed to the public at large that, by order dated April 23, 2021, it has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021.





This action was necessary as these entities have been found non-compliant with the RBI directions on Storage of Payment System Data.

Reserve Bank of India has clarified that the order will not impact existing customers. The order only restricts onboarding new customers

American Express Banking Corp. and Diners Club International Ltd. are Payment System Operators authorized to operate Card Networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

The following are the present AmEx Card Variants, available in India:

·        American Express Platinum Card

·        American Express Smart Earn

·        American Express Membership Rewards

·        American Express Platinum Reserve

·        American Express Gold Card

·        American Express Platinum Card

·        Jet Airways American Express Platinum

AmEx card volumes for the last few months are us under: -

 


Diners Club operates as a co-branded card with HDFC Bank hence independent card statistics are not in public domain

The following are Diner Club Card Variants, available in India :

·        Diners Club Black

·        Diners Club Privilege

·        Diners ClubMiles

·        Diners Club Premium

·        Diners Club Rewardz

 

Each card variant has different privileges.

QUOTE

 

1950

DINERS CLUB BECOMES THE WORLD’S FIRST MULTIPURPOSE CHARGE CARD

For businessman Frank McNamara, forgetting his wallet while dining out at a New York City restaurant was an embarrassment he resolved never to face again. Luckily, his wife bailed him out and paid the tab.

A year later in February 1950, he returned to Major’s Cabin Grill with his partner Ralph Schneider. When the bill arrived, McNamara paid with a small cardboard card, known today as a Diners Club Card. The event was hailed as the First Supper, paving the way for the world’s first multipurpose charge card.

UNQUOTE

Background for RBI Press Release dt 23rd April, 2021.

RBI takes supervisory action on Card Networks – American Express Banking Corp. and Diners Club International Ltd

 

In terms of RBI circular on Storage of Payment System Data dated 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 / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system only in India.

 

They were also required to report compliance to RBI and submit a Board-approved System Audit Report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified therein.

 

Disclaimer: These are my personal views only. The bottom line is Mission #LessCashNotCashLess

Good to read: -

Our card members come from all walks of life: Manoj Adlakha, American Express

 

 


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