Recorded RBI impact
Fine: Rs 31.8 L
Monetary penalty · Fresh imposition
Published by RBI
3 Oct 2025
Case Brief
By an order dated October 01, 2025, RBI imposed a monetary penalty on American Express Banking Corp. The penalty followed RBI's ISE 2024 supervisory inspection and a show-cause process, which concluded that the bank had not made efforts to reverse credit balances of certain credit cardholders, arising from refund / failed / reversed transactions, to their bank accounts. RBI cited non-compliance with the Credit Card and Debit Card - Issuance and Conduct Directions, 2022 and invoked section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after its ISE 2024 inspection found that American Express Banking Corp. had not made efforts to reverse credit balances of certain credit cardholders, arising from refund / failed / reversed transactions, to their bank accounts. The action was taken for non-compliance with specific RBI directions under the Credit Card and Debit Card - Issuance and Conduct Directions, 2022, under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
Operating Impact
American Express Banking Corp. must absorb the monetary penalty and address the supervisory deficiency identified by RBI. The release does not mention a separate operational restriction, but RBI notes the penalty is without prejudice to any other action that may be initiated later.
Regulatory Basis
- section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 31.8 L
- Order Date
- 1 Oct 2025
- Effective From
- 1 Oct 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank