InvestorQ : With RBI lifting the ban on American Express, can they resume issue of cards to customers once again?
Priyanka N made post

With RBI lifting the ban on American Express, can they resume issue of cards to customers once again?

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Neelam Naik answered.
2 months ago
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Yes that is absolutely correct. Remember, when the ban was imposed, it was never on the existing customers, who could continue as usual. However, the onboarding of fresh customers had been banned for American Express, so no new credit customers have been added for the last 15 months. RBI lifted the ban on new customer acquisition by American Express almost 15 months after the ban was imposed by the RBI in May 2021. The ban was on account of non-compliance with local data storage norms.

Passing its order reversing the original ban, RBI noted that AMEX had shown satisfactory compliance, triggering the lifting of the ban. Earlier, RBI had also imposed a ban on Diners Club and MasterCard which has already been lifted. During the ban period, the total number of credit cards issued by American Express fell from 1.51 million to 1.36 million. It is one of the smallest players in this space.

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