**Executive Summary**
On October 1, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹31.80 lakh on American Express Banking Corp. for non-compliance with certain directions of the Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022. The penalty was imposed under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹31.80 lakh on American Express Banking Corp.
* The order was dated October 1, 2025.
* **Reason for Penalty:**
* Non-compliance with certain directions of Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022.
* **Authority for Penalty:**
* Penalty imposed under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
* **Background:**
* Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted with reference to its financial position as on March 31, 2024.
* A notice was issued to the bank advising it to show cause as to why penalty should not be imposed for failure to comply with directions.
* **Sustained Charge:**
* The bank did not make any efforts to reverse credit balances of certain credit cardholders, arising out of refund/failed/reversed transactions, to their bank accounts.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* It is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**American Express Banking Corp.**
* **Impact:** Financial penalty of ₹31.80 lakh and potential reputational damage.
* **Action Required:** Rectify the non-compliance issues related to credit card and debit card directions to prevent future penalties.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
American Express Banking Corp: The entity on which monetary penalty is imposed.
Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022: The directions that were not complied with, leading to the penalty.
Banking Regulation Act, 1949: The Act under which the penalty was imposed.
Mumbai: Location of the RBI office.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
October 03, 2025
RBI imposes monetary penalty on American Express Banking Corp
The Reserve Bank of India (RBI) has, by an order dated October 01, 2025, imposed
a monetary penalty of ₹31.80 lakh (Rupees Thirty One Lakh Eighty Thousand only) on
American Express Banking Corp. (the bank) for non-compliance with certain directions
of Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct)
Directions, 2022 issued by RBI. 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.
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. Based
on the supervisory findings of non-compliance with RBI directions and related
correspondence in that regard, a notice was issued to the bank advising it to show
cause as to why penalty should not be imposed on it for its failure to comply with the
said directions.
After considering the bank’s reply to the notice, additional submissions made by it
and oral submissions made during the personal hearing, RBI found that the following
charge against the bank was sustained, warranting imposition of monetary penalty:
The bank 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.
(Brij Raj)
Press Release: 2025-2026/1245 Chief General Manager