After the Reserve Bank of India (RBI) lifted curbs on American Express Banking Corp, enabling it to onboard new domestic customers, the financial services company on Wednesday said the move of India’s central bank is the result of the company’s significant local investments in technology, infrastructure and resources.
American Express welcomed RBI’s decision to lift the restrictions over it.
“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 and COO, American Express Banking Corp, India.
“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,” he added.
On Wednesday, the Reserve Bank of India (RBI) lifted American Express Banking Corp restrictions. With the lifting of the ban, American Express will now be able to add new customers in India to its card network.
“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 the onboarding of new domestic customers have been lifted with immediate effect,” said the RBI statement.
By its order dated April 23, 2021, RBI had imposed restrictions on American Express Banking Corp from onboarding new domestic customers onto its card network from May 1, 2021, for non-compliance with the RBI circular on Storage of Payment System Data.
Similar restrictions were earlier imposed on Mastercard and Diners Club International. The restriction on Diners Club was removed in November last year, while the ban on Mastercard was lifted last month.
Per the RBI norms, financial services companies like Visa, Mastercard, American Express and Diners Club have been required to store Indian payment data locally since October 2018.
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