Leading non-bank credit card issuer American Express Banking Corp can add new customers after the Reserve Bank of India (RBI) removed restrictions on the firm, effective immediately, citing compliance with data storage rules.
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"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 onboarding of new domestic customers have been lifted with immediate effect," the RBI said in a statement.
Back in 2021, the RBI had restricted American Express Banking Corp from onboarding new domestic customers onto their card networks from May 1 for violating data storage norms.
American Express Banking Corp is a payment system operator authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).
In April 2018, all payment system providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details/information collected/carried/processed as part of the message/payment instruction) relating to payment systems operated by them is stored in a system only in India.
They were also required to report compliance to RBI and submit a board-approved system audit report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified.
