American Express Banking Corp. said on Wednesday that the Reserve Bank of India’s (RBI) decision to ease restrictions on the company’s ability to accept new domestic clients is the consequence of the company’s sizeable local investments in technology, infrastructure, and resources.
American Express Banking Corp. is no longer subject to limitations, according to the Reserve Bank of India (RBI). American Express will now be able to add new Indian clients to its card network thanks to the easing of the embargo. The RBI had prohibited American Express Banking Corp. by order dated April 23, 2021 from adding any new domestic cardholders to its network as of May 1, 2021 due to non-compliance with the RBI circular on Storage of Payment System Data.
The restrictions imposed by order dated April 23, 2021 on the onboarding of new domestic customers have been lifted with immediate effect, according to a statement from the Reserve Bank of India (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.
It’s important to note that Mastercard and Diners Club International have faced restrictions of a similar nature. While Mastercard was still prohibited, Diners Club’s prohibition was abolished in November of last year.
Since October 2018, financial services corporations like Visa, Mastercard, American Express, and Diners Club have been forced to locally retain payment data from India in accordance with RBI regulations.
