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 23^rd 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

 

 

Discover Cards and Diner Club International Cards part of India's RuPay Network.

Today, i.e March 07, 2012 a new chapter in the Indian Payments has begun.

A strategic alliance between Discover Financial Services (DFS) and National Payments Corporation of India (NPCI), has been announced.

The top 11 points about this strategic alliance.

1. At present Diners Club International (DCI) cards are accepted at CitiBank ATM's.

2. Discover cards and Diners Club International (DCI) cards will be accepted at NPCI ATMs and point-of-sale terminals for purchases in India.

3. RuPay (the national card payment network in India) cardholders will be able to utilize the Discover, Diners Club International and PULSE networks for international purchases and cash access outside of India.

4. The companies are also working to implement D-PAS, Discover’s EMV technology, to offer chip-based cards to RuPay cardmembers.

5. The arrangement will be implemented in 3 phases. Phase 1) DFS and DCI cards will be accepted at RuPay ATMs in India. Phase 02 ) DFS and DCI cards will be accepted at RuPay POS locations. Phase 03) Acceptance of RuPay Global Cards on Discover’s global payment network outside of India.

6. The final aim of the network-to-network alliance between DFS and NPCI is the issuance of RuPay Global cards, once the domestic RuPay cards being launched later this month stabilize.

7. Discover, like American Express Co. (AXP), typically issues its own credit cards and operates a payments network that processes transactions.

8. Visa and MasterCard, only process transactions. The higher transaction volume helps boost their revenue.

9. Discover has a smaller acceptance footprint internationally than does American Express, Visa and MasterCard, though it has been working to change that.

10. At present there are 120 million+ DFS and Diners Club cards worldwide and these card holders can enjoy the wide reach of RuPay network in India, of over 90,000 ATM's.

11. In the near future, DFS and DCI cards would also be accepted at over six lakh POS terminals that are linked to the NFS.