E-Paper
RBI lifts curbs on American Express, bank can now issue cards to customers
The restrictions on American Express were imposed last year for being non-compliant with the directions on Storage of Payment System Data effective May 1, 2021.
The Reserve Bank of India (RBI) on Wednesday lifted restrictions imposed on American Express Banking Corp, allowing the US-based entity to now issue cards to new customers in India following satisfactory compliance with data storage norms.
The restrictions on American Express were imposed last year for being non-compliant with the directions on Storage of Payment System Data effective May 1, 2021.
"In view of the satisfactory compliance demonstrated by American Express Banking Corp with the Reserve Bank of India (RBI) circular... on Storage of Payment System Data, the restrictions imposed... on onboarding of new domestic customers have been lifted with immediate effect," RBI said in a statement.
American Express welcomed the RBI's move.“We welcome today’s decision by the Reserve Bank of India, which enables American Express Network to onboard new customers effective immediately. India is a key strategic market for American Express and today's decision is the result of our significant local investments in technology, infrastructure, and resources," Hindustan Times's sister publication LiveMint quoted Sanjay Khanna, interim CEO and COO at American Express, as saying.
American Express Banking Corp is a Payment System Operator authorised to operate a card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
The central bank had lifted similar restrictions imposed on Mastercard in June.
In November last year, the central bank lifted similar restrictions on Diners Club International. The curbs on Diners Club International too were effective from May 1, 2021, as was in the case of American Express.
(With inputs from agencies)
