This Wednesday, the Reserve Bank of India lifted the ban imposed on the international card network of American Express, more than 15 months since the event by allowing it to enroll new customers after writing compliance. According to the RBI, American Express Banking Corp. would not allow new domestic clients for the international credit card network from May due to violations with respect to the 2018 circular storage of payment system data. American Express Banking Corp. India has expressed its gratitude to the RBI for this decision, as India is a very important strategic market for the company. According to Khanna, this unban with the company occurred because of its significant local investment in technology and resources. It also directed Diners Club and Mastercard to stop issuing cards in the year 2021, but later allowed them to issue new cards.
American Express Banking Corp has been proven to have complied sufficiently in order for immediate lifting of restrictions against onboarding new domestic customers by order dated April 23, 2021. Such relaxations would now allow American Express to address the growing demands for premium goods and services while continuing to expand its business in India by delivering best-in-class value and customer experiences. Most firms complied with the RBI’s diktat eventually, but initially resisted it; the mandate was: card networks should retain any information with respect to payments initiated in India within the country.
All data types related to retaining in India range from end-to-end transaction data about the payment or the settlement transaction.
