The Reserve Bank of India (RBI) has lifted the ban on American Express on new customer acquisition which was imposed with effect from May 2021 due to non-compliance with local data storage norms.
“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,” RBI said in a notification.
Similar bans were imposed on Diners Club International which was lifted in November last year.
The banking regulator, in April 2018, had told all payment system operators to store their entire data in a system only in India included full end-to-end transaction details, information collected, carried, and processed as part of the message, and payment instruction.
They were also required to report compliance to the RBI and submit a board-approved System Audit Report (SAR), prepared by a CERT-In-empaneled auditor within the timelines specified therein.
Click here for official press release:
Knowledge Source :
Non-Resident Corporates Exempted from TCS on Remittances, Tour Packages