RBI removes ban on Diners Club International while restriction on Mastercard, American Express continues

Advertisement
RBI removes ban on Diners Club International while restriction on Mastercard, American Express continues
Canva
  • RBI has lifted a ban on payment system operator Diners Club International, which means the card company can now on-board new users.
  • On April 23, India’s central bank had banned the US-based company from onboarding new domestic customers onto its card network for violating data storage norms.
  • Meanwhile, Mastercard, American Express are still restricted from doing new business in India.
The Reserve Bank of India (RBI) has lifted a ban on payment system operator Diners Club International, which means the card company can now onboard new clients. In India, Diners Club has partnered with HDFC Bank.

On April 23, the central bank had banned the US-based company from onboarding new domestic customers onto its card network for violating data storage norms.

The regulator has lifted the ban on the Diners Club as it has complied with the stipulated norms.

Advertisement

“In view of the satisfactory compliance demonstrated by Diners Club International Ltd. with the Reserve Bank of India (RBI) circular dated April 6, 2018 on Storage of Payment System Data, the restrictions imposed, vide order dated April 23, 2021, on on-boarding of fresh domestic customers have been lifted with immediate effect,” RBI said in a statement on November 9.

Meanwhile, RBI’s ban on American Express and Mastercard continues. Along with Diners, RBI had barred another US-based payment system operator American Express. In July 2021, RBI had also restricted Mastercard for non-compliance with its local data storage norms.

After Tata Motors, TVS Motor may raise money to run EV business

Advertisement
Britannia is unable to improve its profit despite a price increase — what’s next
{{}}