The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 31.80 lakh (Rupees Thirty One Lakh Eighty Thousand only) on American Express Banking Corporation for non-compliance with certain directions of Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022 issued by RBI. The American Express Banking Corp for not making any effort to refund the credit balance arising out of refund/failed/reversed transactions of some credit card holders into their bank accounts thereby violating the norms and hence RBI has imposed a monetary penalty of Rs. 31.80 lakh on the bank.
 |
| RBI Imposes Rs 31.8 lakh Penalty on American Express Banking Corp |
RBI Imposes ₹31.8 lakh Penalty on American Express Banking Corp
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹31.80 lakh on American Express Banking Corporation for non-compliance with certain directions of Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022 issued by RBI.
Read Also: RBI Imposes Rs 31.8 lakh Penalty on Indian Overseas Bank
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 4.20 lakh on HDB Financial Services Limited.
RBI Imposes Penalty on American Express Banking Corp: Background
The statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The American Express Banking Corp did not make any efforts to reverse credit balances of certain credit cardholders, arising out of refund/failed/reversed transactions, to their bank accounts.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Read Also: RBI Imposes Rs 1 lakh Penalty on Panchsheel Mercantile Co-operative Bank
About American Express Banking Corp
The American Express Banking Corporation of India provides financial services. American Express offers credit cards, charge cards, travellers cheques and payment, travel and expense management services to customers in India.
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
Read Also: RBI signs Currency Swap Agreement with Maldives Monetary Authority
Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
Read Also: RBI appoints Aviral Jain as new Executive Director
Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to American Express Banking Corp for upcoming exams
- Incorporated: 29 February 2008
- Location: Gurgaon
- Chief Human Resource Officer: Kabir Julka
- Vice-President/CEO: Manoj Adlakha
0 Comments