The Reserve Bank of India on Wednesday lifted the restrictions on American Banking Corp, thus allowing the bank to onboard new domestic customers on its card network, according to a statement by the central bank.
“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 on-boarding of new domestic customers have been lifted with immediate effect,” the statement said.
Notably, in May last year, RBI imposed restrictions on American Express for being non-compliant with the directions of the Storage of Payment System Data, in relation to a 2018 order, where all payment system providers were directed to store the data related to payments systems—such as full end-to-end transaction details, information collected/carried/processed as part of the message/payment instruction in a data center/system within India.
Moreover, as per the order, the payment system providers were asked to submit a System Audit Report (SAR) conducted by a CERT-In empanelled auditor within the specified timelines. The providers were also directed to submit a compliance report to RBI.
(With Inputs From PTI)