RBI ups scrutiny on credit cards
strict scrutiny of cobranded credit cards – a sector that has seen strong growth recently – in recent times is aimed at preventing backdoor entry into the highly regulated credit card industry, people aware of the situation told ET.
The central bank wants to strengthen regulations on cobranded credit cards, they said.
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Non-banking finance companies (NBFCs) have been seeking regulatory nod for credit card issuance for years but the regulator only allows a handful of banks to issue these cards, the person pointed out.
The RBI wants cobranded cards to grow, but wants to ensure the growth happens in a regulated fashion, the founder added.
Also read | After UPI, now credit cards overtake debit card transactions
In a directive issued on March 7, the central bank told all cobranded card issuers to prominently carry the name of the issuing bank. It has also asked the cobranding partner not to have
