Amex can onboard new customers in India as RBI lifts ban

The Reserve Bank of India (RBI) on Wednesday lifted enterprise restrictions imposed on American Express Banking Corp after virtually 16 months. Amex can now points playing cards to new customers in India.

The ban was imposed with impact from May final 12 months resulting from non-compliance on storage of fee system information.

The RBI in a press release stated the corporate’s compliance with information storage norms is now “passable”.

“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,” the central financial institution stated.

Reacting to the RBI’s transfer, Sanjay Khanna, Interim CEO and COO on the American Express stated, “We welcome at present’s determination by the Reserve Bank of India, which allows American Express Network to onboard new customers efficient instantly. India is a key strategic marketplace for American Express and at present’s determination is the results of our important native investments in know-how, infrastructure, and assets.”

The RBI had on 23 April, 2021 imposed restrictions on American Express Banking Corp from on-boarding new home customers onto its card community from 1 May, 2021 for non-compliance with the central financial institution’s round dated 6 April, 2018 on Storage of Payment System Data.

The RBI had stated the supervisory motion has been taken in train of powers vested in it below Section 17 of the PSS Act.

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