The Reserve Bank of India (RBI) on Tuesday lifted restrictions on Diners Club International Ltd.
In a statement, the RBI said, "In view of the satisfactory compliance demonstrated by Diners Club International with the RBI circular on 6 April 2018 on storage of payment system data, the restrictions imposed, vide order dated 23 April 2021, on the onboarding of fresh domestic customers have been lifted with immediate effect."
Earlier, the RBI had barred Diners Club from May 1, 2021, from adding new local customers, citing non-compliance with data-storage rules.
As per the central bank's April 2018 circular on storage of payment system data, all payment system providers were asked to ensure that, within six months, the entire data relating to payment systems operated by them is stored in a system only in India. This included full end-to-end transaction details, information collected, carried, and processed as part of the message and payment instruction.
These payment system providers were also required to report compliance to RBI and submit a board-approved system audit report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified therein.
Along with Diners Club, RBI had also barred American Express from onboarding fresh customers, through the same order.
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