By Malvika Gurung
Investing.com -- The central bank, Reserve Bank of India (RBI) has lifted the ban imposed on the American credit card issuer Diners Club International on November 9, 2021, which means that the latter can now onboard new customers in India.
On April 23, 2021, RBI had imposed restrictions on Diners Club International Ltd from onboarding fresh customers in the Indian market to its card network starting May 1, 2021, on account of the credit card issuer’s failure to comply with the data localization norms put in place by RBI in 2018.
As per RBI’s circular, Diners Club has now complied with the central bank’s local data storage norms, following which it can resume onboarding fresh customers in India.
In April 2018, RBI prescribed the ‘Data localisation norms’, as per which all regulated entities or foreign Payment System Operators (PSOs) were mandated to store all payment-related information of Indian customers on ‘Indian soil.’
These entities were required to include end-to-end transaction details and information pertaining to payment or settlement transactions of (Indian) customers, which may include their names, contact information, Aadhaar number, PAN number, payment data, etc., as stated by RBI.
However, despite being given a deadline to adhere to the mandated localisation norms by October 2018, card issuers like Diners Club, American Express (NYSE: AXP ) and Mastercard (NYSE: MA ) failed to do so, thereby being banned by the central bank from onboarding new domestic customers until they comply with the same.
The RBI continues to put a ban on American Express and Mastercard.
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