RBI has removed restrictions on Diners Club International, a credit card issuing company. Along with this, he has also been allowed to add new domestic customers with him. The Reserve Bank said in a statement that the restrictions on Diners Club are being removed with immediate effect.
The ban was imposed due to violation of local data storage rules
The RBI had barred Diners Club from adding new customers for violating norms on local data storage. RBI had issued this order on 23 April, in which the ban was imposed from 1 May for non-compliance with the central bank’s standards related to local data storage.
American Express, Mastercard continue to be banned
On April 23, RBI barred Diners Club and American Express from adding new customers. Later it also barred Mastercard (MASTER CARDS) from adding new customers from July 22. All these credit card issuers were found guilty of non-compliance with RBI’s norms on local data storage.
Local data storage issue unresolved
RBI’s ban on American Express and Mastercard continues. There is no separate data on the number of cards issued by Diners Club in India. It works here by connecting to banks. Its major partner in India is HDFC Bank. American Express is the seventh largest credit card issuer in the country. While Mastercard is the second largest company. The question of local storage is becoming very complicated. The Government of India says that companies will have to keep their data in local servers. This data will not be kept on foreign servers. At the same time, some companies do not want to keep their data on the local server.
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