HomeBUSINESSAmex can onboard new customers in India as RBI lifts ban

Amex can onboard new customers in India as RBI lifts ban

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The Reserve Bank of India (RBI) on Wednesday lifted business restrictions imposed on American Express Banking Corp after almost 16 months. Amex can now issues cards to new customers in India.

The ban was imposed with effect from May last year due to non-compliance on storage of payment system data.

The RBI in a statement said the company’s compliance with data storage norms is now “satisfactory”.

“In view of the satisfactory compliance demonstrated by American Express Banking Corp 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 new domestic customers have been lifted with immediate effect,” the central bank said.

Reacting to the RBI’s move, Sanjay Khanna, Interim CEO and COO at the American Express said, “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.”

The RBI had on 23 April, 2021 imposed restrictions on American Express Banking Corp from on-boarding new domestic customers onto its card network from 1 May, 2021 for non-compliance with the central bank’s circular dated 6 April, 2018 on Storage of Payment System Data.

The RBI had said the supervisory action has been taken in exercise of powers vested in it under Section 17 of the PSS Act.

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