Given the satisfactory level of compliance demonstrated by American Express Banking Corp., the restrictions imposed under the April 23, 2021 order on the onboarding of new domestic customers have been lifted immediately, the regulator said. Stated.
For the first time in more than 15 months, the Reserve Bank of India (RBI) on Wednesday eased limitations on its global card network American Express, mentioning “excellent compliance”.
On April 23, 2021, RBI will cease accepting new domestic customers for American Express Banking Corp. from May. Regulators cited violations of a 2018 directive on storing payment system data. Two other major companies, Diners Club and Mastercard, have also been asked to stop issuing cards in 2021. The RBI then allowed card networks to start issuing new cards.
“Restrictions imposed, pursuant to order of 23 April 2021, on the onboarding of new domestic customers have been withdrawn with immediate effect,” it stated. Considering the positive compliance demonstrated by American Express Banking Corp..”The RBI’s decision was applauded by Sanjay Khanna, interim chief executive, and chief operating officer of American Express Banking Corp. in India, who also noted that the country is a crucial strategic market for American Express. According to Khanna, the company’s significant local investments in technology, infrastructure, and resources led to the decision to lift the restriction.
We will be able to meet the rising demand for upscale goods and services and expand our business in India thanks to American Express’ ability to provide exceptional value and customer experience.
In an April 2018 notice, RBI instructed card networks to store all payment data from India in the country. Many companies initially objected to this, but in the end, they had to comply.
Data stored in India includes end-to-end transaction details and payment or billing transaction information. In an April 2018 circular, the central bank said in June 2019 that there are no barriers to processing payment transactions outside India, but data should only be stored in India after processing.
“Data must be removed from foreign systems and returned to India within one business day or within 24 hours of the processing of payments, whichever comes first, if processing is done overseas. Just for India, the same. It ought to be kept, he remarked.
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