scorecardresearch
Friday, March 29, 2024
Support Our Journalism
HomeEconomyRBI restricts Amex, Diners Club from adding new customers in India over...

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

The firms are the first to be penalised under India’s data-storage rules announced 2018, which ordered payment systems providers to store all data generated by them on servers in India.

Follow Us :
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 & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular