RBI restricts Amex, Diners Club from adding new customers in India over data storage rules

The Reserve Bank of India (RBI) logo | Vivek Prakash | Bloomberg

Text Size:

Mumbai: The Reserve Bank of India restricted American Express Banking Corp. and Diners Club International Ltd. from adding new local customers, citing non-compliance with data-storage rules.

The order will take effect May 1 and won’t impact existing customers, the RBI said in a statement Friday.

The firms are the first to be penalized under India’s data-storage rules announced 2018, which ordered payment systems providers to store all data generated by them on servers in India. Digital banking is a key focus for Governor Shaktikanta Das, who in recent months has also curbed India’s biggest private sector bank — HDFC Bank Ltd. — from adding new digital products and credit card customers after the lender reported multiple outages.

The announcement comes as Amex is on the hunt for new customers, encouraged by lower-than-expected losses on its loans. It has the highest number of credit card customers among foreign banks in India after Citigroup Inc., which is looking to exit the Asian market.-Bloomberg

Also read: India’s ‘casino’ type midcap rally could take a break, large stocks found safer amid Covid


Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism