RBI Lifts Ban On American Express As per the RBI norms, American Express have been required to store Indian payment data locally since October 2018

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

American Express Twitter handle

The Reserve Bank of India, on Wednesday, lifted the restrictions on American Express Banking Corp, allowing it to restart onboarding of new domestic customers on its card network.

"In view of the satisfactory compliance demonstrated by American Express Banking Corp the restrictions imposed, vide order dated April 23, 2021, on onboarding of new domestic customers have been lifted with immediate effect," the Central Bank said in a notification.

It also added that, "American Express Banking Corp and Diners Club International are Payment System Operators authorized to operate Card Networks in the country under the payment and settlement systems act, 2007."

As per RBI report dated on 23rd April 2021, it 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 o storage of payment system data. RBI had lifted similar restrictions on Matercard after 11 months.

Sanjay Khanna, Interim CEO and COO, American Express Banking Corp, India, in a news report was quoted as saying, "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 America Express, and today's decision is the result of our significant local investments in technology, infrastructure and resources."

As per the RBI norms, financial services companies like Mastercard, American Express and Diners Club have been required to store Indian payment data locally since October 2018.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

News and Trends

Kaynes Semicon To Invest INR 4,000 Crore On OSAT/ATMP

The investment is expected to create around 1,000-plus jobs

Leadership

International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Growing a Business

Expand Your Knowledge and Unlock Success With These Must-Read Business Books

Top business books to ignite your entrepreneurial journey.

Branding

6 Tips for Successfully Communicating Your Personal Brand

Follow these simple guidelines to stand out from the crowd and effectively broadcast your own personal brand to the world.

Business News

A Former Disney Star Just Launched a Space Startup With $6.3 Million in Seed Funding. Here's Why She Did It.

Bridgit Mendler co-founded Northwood Space to bring data from space reliably down to Earth.

Business News

Airbnb Renter Discovers Hidden Door, Says Police Confirm There's a Secret Unit Upstairs With 'Surveillance': 'A Terrifying Experience'

One bride-to-be was in for a not-so-welcome surprise when she discovered a secret door in her Airbnb rental.