American Express Banking Corp got a green signal on Tuesday when the RBI lifted the ban on the Credit Cards Issuer. Thus, AmEx can now start signing up the new card users on their network.
RBI Lifts Ban And Allows American Express To Sign Up New Card Users
The Central Bank had barred AmEX due to not following its new regulations on “Storage of Payment System Data”, which is now effective from May 1 of 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 the onboarding of new domestic customers have been lifted with immediate effect,” reads Central Bank’s statement.
In April 2018, all the payment service providers were ruled to ensure that all the data (“full end-to-end transaction details, information collected, carried, processed as part of the message, payment instruction”) relating to the payment network services offered by them stays only in India.
AmEx Praised RBI’s Decision
AmEx Banking Corp, on Wednesday, after the ban was lifted, said the Central Bank’s decision was the outcome of our major investment in “technology, infrastructure, and resources.”
“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,” said Sanjay Khanna, Interim CEO, of AmEX.
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He further added, “American Express’ ability to deliver best-in-class value and customer experiences will enable us to meet the increasing demand for premium products and services and grow our business in India.”
