The Reserve Bank of India (RBI) on August 24 lifted restrictions on American Express that had prevented the US company from onboarding new customers in India for almost 16 months. The regulator cited satisfactory compliance demonstrated by the company. American Express can now issue cards to new customers in India.

The ban was imposed with effect from May 2021 due to non-compliance with the storage of payment system data.

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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 the onboarding of new domestic customers have been lifted with immediate effect,” RBI said in a statement.

On April 23, 2021, the RBI 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 central bank’s circular dated April 6, 2018, on Storage of Payment System Data.

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The regulator had said the supervisory action has been taken in the exercise of powers vested in it under Section 17 of the PSS Act.

Similar restrictions were imposed on Diners Club and Mastercard previously. The ban on Diners club was lifted in November 2021, while the restrictions on Mastercard were removed in July this year.

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According to the RBI circular on Storage of Payment System Data, all Payment System Providers were directed to ensure that within a period of six months the entire data relating to payment systems operated by them is stored in a system only in India. This data should include complete end-to-end transaction details and information collected, carried, and processed as part of the message and payment instructions.

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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 therein, the RBI said.