American Express has asked its partner banks and payment operators in India to restart onboarding of new merchants on its network from August 7, as it is ready to partially resume business in the country, people familiar with the matter told The Economic Times.
The communication comes months after the Reserve Bank of India (RBI) banned Amex from issuing new cards for non-compliance of data storage rules in India.
In its communication, Amex said it was currently fixing the issues of compliance related to data localisation of its card users that had initially led to a regulatory ban.
According to the ET report, Amex officials said, "American Express strictly adheres to RBI instructions and will not engage in any business that it is not permitted to do by RBI."
The RBI had asked American Express Banking Corp and Diners Club International to stop issuing new cards to customers from May 1. On July 14, the RBI issued such orders to Mastercard. The central bank clarified that the order will not impact existing customers.
In April this year, Citi had announced its exit from India and put on the block its consumer business, including the credit cards business. From being among the top two players in 2012, the bank's ranking dropped to sixth, with 2.2 million plus credit cards and accounts. The bank said the credit cards business will function normally, with zero impact on customers.
(Edited by : Shoma Bhattacharjee)