Indian cenbank lifts Diners Club ban on issuing new cards after six months


A reflection of a security guard can be seen next to the Reserve Bank Of India (RBI) logo at the RBI headquarters in Mumbai, India on June 6, 2019. REUTERS / Francis Mascarenhas / File Photo

BENGALURU, Nov. 9 (Reuters) – The Reserve Bank of India (RBI) has lifted restrictions on Diners Club International, owned by Discover Financial Services (DFS.N), which it imposed earlier this year for violating the rules storage, the central bank said Tuesday.

“In view of the satisfactory compliance demonstrated by Diners Club International… the restrictions imposed… on the on-boarding of new domestic customers have been lifted with immediate effect,” the RBI said in a statement. declaration.

Discover did not immediately respond to a request for comment from Reuters.

Discover previously said the ban would not impact existing Diners Club cardholders in the region. The impact of the six-month ban on Diners Club, which has forged ties with India’s leading private-sector lender HDFC Bank (HDBK.NS), was not immediately clear.

The RBI had banned Diners Club and American Express Co (AmEx) (AXP.N) in April and Mastercard Inc (MA.N) in July from issuing new cards to domestic customers after breaking rules that required companies to store their Indian payments. data locally so that the controller can have “unhindered supervisory access”.

The restrictions on AmEx and Mastercard are still in place.

U.S. companies had lobbied unsuccessfully against the 2018 data storage guidelines, saying the rules would increase their infrastructure costs, hit their global fraud detection platforms and affect planned investments in India, where a growing number people use digital payment methods.

Reporting by Chris Thomas in Bangalore; Editing by Krishna Chandra Eluri

Our standards: Thomson Reuters Trust Principles.

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