RBI Lifts Restrictions Imposed On American Express On-Boarding New Customers

The Reserve Bank of India (RBI) has lifted the business restrictions imposed on American Express Banking Corp due to the entity's satisfactory compliance with RBI guidelines, according to a press release from the RBI.

RBI in its press release on August 24, 2022, has said, " 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."

In April 2021, the RBI restricted American Express from onboarding new domestic users into its card network starting May 1, 2021, for failing to comply with the banking regulator's circular on Payment System Data Storage.

American Express is a payment system operator licenced to operate card networks in the country under the Payment and Settlement Systems Act of 2007.