RBI Lifts Restrictions on American Express Banking Corp: Key Details

Reserve Bank of India Lifts Restrictions on American Express Banking Corp

The Reserve Bank of India (RBI) has announced the lifting of business restrictions imposed on American Express Banking Corp. This decision comes after the bank demonstrated satisfactory compliance with the RBI circular dated April 6, 2018, concerning the Storage of Payment System Data. Consequently, the previous restriction on acquiring new domestic customers is now removed, effective immediately. These restrictions were originally imposed on August 24, 2022.

Background on the Restrictions

On April 23, 2021, the RBI placed restrictions on American Express Banking Corp., inhibiting the company from onboarding new domestic customers to its card network, effective May 1, 2021. This measure was taken due to the bank's failure to comply with the RBI's directive regarding the storage of payment system data.

It is important to note that these restrictions were limited to the onboarding of new domestic customers; existing customers and other business operations remained unaffected.