After American Express demonstrated satisfactory compliance with local data storage rules, India lifted business restrictions on the company.
The Reserve Bank of India banned Mastercard, American Express and Diners Club from issuing new cards to customers because of noncompliance with local data storage rules. Firms were able to serve their existing customers despite the business restriction. Mastercard was banned in India in June.
The central bank said in a statement that the restrictions imposed on new domestic customers have been lifted.
The local data-storage rules require payments firms to store transaction data in India. Visa, Mastercard and several other firms requested New Delhi to reconsider its rules, which they argued were designed to allow the regulators unfettered access.
The Reserve Bank of India has decided to allow American Express Network to onboard new customers. India is a key strategic market for American Express and today's decision is the result of our significant local investments in technology, infrastructure, and resources.
The ability of American Express to deliver best in class value and customer experiences will allow us to meet the increasing demand for premium products and services.
The revival of American Express business in India should give a boost to the local banks and fintechs that for over a year have been able to largely offer customers debit and credit cards powered by Visa and Rupay.
Many banks were surprised by the restriction on global cards. RBL Bank had to switch to Visa in a matter of weeks.
India lifts ban on Mastercard
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