RBI Approves American Express Card Issuance in India
(25 August 2022 – India) The Reserve Bank of India (RBI) has relaxed its standing ban on American Express approving new card customers in the country after determining the US company now satisfies its data storage rules.
AMEX along with Mastercard and Diners Club were indefinitely barred from onboarding new customers since Q2 2021 for falling short of new rules introduced in 2018 requiring all payment system providers store full end-to-end transaction details in systems “in country” in India only. The RBI eased a similar ban on Mastercard in Q2 2022 as several major enterprises including AMEX, MasterCard, Visa, PayPal, Amazon and the US government railed against the adjudication when it was brought down by the Indian government.
“In view of the satisfactory compliance demonstrated by American Express Banking Corp with the RBI circular on Storage of Payment System Data, the restrictions imposed on onboarding of new domestic customers have been lifted with immediate effect” the central bank said in a statement.
“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 American Express and today’s decision is the result of our significant local investments in technology, infrastructure, and resources. American Express’ ability to deliver best in class value and customer experiences will enable us to meet the increasing demand for premium products and services and grow our business in India.” AMEX Interim CEO and COO India, Sanjay Khanna commented on the ruling.