RBI allows Diners Club to onboard new customers
Premium- The RBI had earlier restricted Diners Club International Ltd from on-boarding new domestic customers onto their card networks from May 1
The Reserve Bank of India today lifted restrictions imposed on Diners Club International with immediate effect over on-boarding of fresh domestic customers. Diners Club International is a payment system operators authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). The RBI order did not not impact the existing customers of Diners Club International.
In a statement today, the RBI said: “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 had imposed restrictions on Diners Club International Ltd. from on-boarding new domestic customers onto its card network from May 1, 2021 for non-compliance with storage of payment system data regulations.
In April 2018, the RBI in circular had said: “All system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India. This data should include the full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction. For the foreign leg of the transaction, if any, the data can also be stored in the foreign country, if required."
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