RBI lifts restrictions imposed on American Express

The Reserve Bank of India (RBI) on Wednesday lifted business restrictions imposed on American Express Banking Corp. The corporation can now issue cards to its new customers in India with immediate effect, the central bank said.

The Reserve Bank had imposed restrictions on American Express Banking Corp from on-boarding new domestic customers from May 01, 2021.

The restrictions were imposed for non-compliance with the RBI circular -- dated April 6, 2018 -- on storage of payment system data.

"In view of the satisfactory compliance demonstrated by American Express Banking Corp with the 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 RBI said today.

In another set of notification released today, RBI said it has barred customers of Thodupuzha Urban Co-operative Bank, Kerala, from withdrawing funds as part of several restrictions imposed on the lender due to its deteriorating financial condition.

The restrictions would remain in force for six months from the close of business on August 23, 2022.

The Reserve Bank also said the directions to the co-operative bank should not per se be construed as cancellation of banking licence by RBI.

(With inputs from PTI)