American Express Applauds RBI's Decision To Remove Restrictions In A Key Market
American Express Banking Corp. said on Wednesday that the Reserve Bank of India's (RBI) decision to ease restrictions on the company and allow it to accept new domestic clients is the consequence of the company's large local investments in technology, infrastructure, and resources.
American Express applauded RBI's choice to remove the limitations on it.
"We applaud the Reserve Bank of India's decision from today, which allows American Express Network to accept new clients right away. American Express views India as a crucial strategic market, and our substantial local investments in infrastructure, technology, and resources led to today's decision "said Sanjay Khanna, interim CEO and COO of the Indian arm of American Express.
"Our ability to meet the growing demand for premium goods and services and build our business in India will be made possible by American Express' capacity to deliver best-in-class value and client experiences," he continued.
The Reserve Bank of India (RBI) loosened restrictions on American Express Banking Corp. on Wednesday. American Express will now be able to add new Indian clients to its card network thanks to the easing of the embargo.
The RBI stated that the limits placed on the onboarding of new domestic customers have been lifted immediately as a result of American Express Banking Corp's "satisfactory compliance" with the Reserve Bank of India (RBI) circular of April 6, 2018, on the storage of Payment System Data.
Due to non-compliance with the RBI circular on the storage of payment system data, the RBI placed restrictions on American Express Banking Corp's ability to onboard new domestic clients onto its card network as of May 1, 2021, by order dated April 23, 2021.
Prior to these restrictions, Mastercard and Diners Club International were also affected. In November of last year, Diners Club's restriction was withdrawn, while Mastercard's restriction was lifted just last month.
Since October 2018, financial services firms like Visa, Mastercard, American Express, and Diners Club have had to keep Indian payment data locally in accordance with RBI regulations.