InvestorQ : Why has RBI barred fresh card issuances by American Express and Diners Club?
vaishnavi mhatre made post

Why has RBI barred fresh card issuances by American Express and Diners Club?

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vidhya Laxmi answered.
4 months ago
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RBI instructed American Express and Diners Club International not to onboard any new domestic customers from 01 May on account of non-adherence to the guidelines on local data storage. However, this order will not impact the existing customers of AMEX and Diners Club International in any way.

American Express clarified that they were in the process of shifting to data localization and assured customers that it would not in any way impact their ability to use these cards or the acceptance at merchant outlets. Amex currently has 15.6 lakh customers in India. Diners Club is not an independent entity and operates in India via HDFC Bank tie-up.

This local data storage obligation has been mandated by the RBI quite some time back where all India data has to be housed only in India. RBI requires data pertaining to customer information and respective transaction flows to be localized and had been given six months to comply with. Despite protests and pressure tactics, the RBI has remained firm.

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