Mumbai: The Reserve Bank of India on Wednesday lifted the restrictions imposed last year on American Express Banking Corp and allowed the US-based entity to onboard new customers on its card network following satisfactory compliance with data storage norms.
The central bank had imposed curbs on American Express Banking Corp for being non-compliant with the directions on Storage of Payment System Data effective May 1, 2021.
"In view of the satisfactory compliance demonstrated by American Express Banking Corp with the Reserve Bank of India (RBI) circular... On Storage of Payment System Data, the restrictions imposed... On onboarding of new domestic customers have been lifted with immediate effect," RBI said in a statement.
American Express Banking Corp is a Payment System Operator authorised to operate card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). In June, RBI had lifted similar restrictions on Mastercard. The restrictions on Mastercard were imposed in July 2021.
In November last year, the central bank lifted similar restrictions on Diners Club International. The curbs on Diners Club International too was effective from May 1, 2021 as was in the case of American Express.
As per the norms on Storage of Payment System Data issued in April 2018, all system providers have to ensure that the entire data relating to payment systems operated by them is stored only in India.
They were also required to report compliance to RBI and submit a board-approved system audit report conducted by a CERT-In empanelled auditor within the specified timelines.