RBI lifts business restrictions imposed on American Express, can sign up new card users

India

oi-Deepika S

New
Delhi,
Aug
24:
The
Reserve
Bank
on
Wednesday
lifted
the
restrictions
on
American
Express
Banking
Corp,
citing
satisfactory
compliance
demonstrated
by
the
entity
to
the
central
bank
rules.
Now
American
Express
Banking
Corp
is
allowed
onboarding
of
new
domestic
customers
on
its
card
network.

The
central
bank
had
imposed
curbs
on
American
Express
Banking
Corp
for
not
following
its
new
ruled
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,”
the
central
bank
said
in
a
statement.

In
April
2018,
all
payment
system
providers
were
directed
to
ensure
that
their
entire
data
(full
end-to-end
transaction
details,
information
collected,
carried,
processed
as
part
of
the
message,
payment
instruction)
relating
to
payment
systems
operated
by
them
is
stored
in
a
system
only
in
India.

They
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
a
specified
time.