Following the directions by the Reserve Bank of India (RBI) on Tuesday, private sector lenders, Federal Bank and South Indian Bank, stopped on-boarding new customers into their co-branded credit cards due to regulatory deficiencies, according to exchange filings.
South Indian Bank has one co-branded credit card in partnership with the State Bank of India (SBI), available in two variants: SimplySAVE and Platinum.
On March 7, the RBI released a Master Direction on “Amendment to the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022.” According to the notification, co-branded cards should explicitly indicate that they have been issued under a co-branding arrangement with a clear mention of the card issuer.
In a separate exchange filing, Federal Bank informed the exchanges that following a letter from the RBI, the lender has stopped the issuance of new co-branded credit cards due to regulatory deficiencies and is rectifying the areas of concern.
The bank also added that it would continue to service existing customers.
Federal Bank has three co-branded credit cards: Federal OneCard, Federal Scapia, and Federal FI.
First Published: Mar 13 2024 | 10:29 PM IST