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.
Action Snapshot
- Primary Impact
- Fine: Rs 31.8 L
- Entity Type
- Bank
- Action Type
- Monetary penalty