American Express Banking Corp. praised the Reserve Bank of India’s (RBI) decision to ease restrictions on the firm so that it may accept new domestic clients as the consequence of the company’s large local investments in technology, infrastructure, and resources. American Express applauded RBI’s choice to remove the limitations on it. American Express will now be able to add new Indian clients to its card network thanks to the easing of the embargo.
RBI esases Restrictions on American Express:
- The Reserve Bank of India (RBI) loosened restrictions on American Express Banking Corp.
- American Express will now be able to add new Indian clients to its card network thanks to the easing of the embargo.
- The restrictions imposed by order dated April 23, 2021 on the onboarding of new domestic customers of American Express have been lifted with immediate effect by RBI.
- 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 have been lifted.
- Due to non-compliance with the RBI circular on the storage of payment system data, the RBI placed restrictions on American Express Banking Corp ability to onboard new domestic clients onto its card network as of May 1, 2021, by order dated April 23, 2021.
About RBI Restrictions Affect:
- Prior to these restrictions, Mastercard and Diners Club International were also affected. In November of last year, Diners Club’s restriction was withdrawn, while Mastercard’s restriction was lifted just last month.
- Since October 2018, financial services firms like Visa, Mastercard, American Express, and Diners Club have had to keep Indian payment data locally in accordance with RBI regulations.
RBI, American Express: Important Takeaways
- Interim CEO and COO of the Indian arm of American Express: Sanjay Khanna
- RBI Governor: Shaktikanta Das