Reserve Bank of India Lifts Restrictions On American Express

India's central bank Reserve Bank of India (RBI) has lifted restrictions on American Express Banking Corporation. Simultaneously, the Reserve Bank has also allowed it to add new domestic customers to its card network. American Express was banned by RBI for not complying with the directions. This banking company had not complied with the rules regarding the storage of payment system data that came into force on May 1, 2021. After the ban is lifted, now the company will once again be able to issue cards to new customers

."The restrictions imposed on American Express Banking Corp have been lifted with immediate effect," the central bank said in a statement. The restrictions have been lifted after the compliance with RBI's norms regarding the storage of payment system data is found satisfactory. In April 2018, the central bank directed all payment system providers to ensure that they keep all their data related to payment arrangements in India. Along with this, he also had to inform the central bank about compliance in this regard. Also, the 'System Audit Report' approved by the Board of Directors was to be submitted within the stipulated time frame.

American Express Banking Corporation is a payment network company. Its headquarter is in New York, USA. It offers charge cards, credit cards, travel checks, and corporate banking facilities to its customers. In India, it operates a card network under a payment system company. The RBI imposed a ban on this company on 23 April last year.