RBI open to let NBFCs in credit card business

However, in its Master direction on cards, the RBI said, “NBFCs registered with the Reserve Bank shall not undertake credit card business without prior approval of the Reserve Bank.” This means NBFCs can issue credit cards if they secure the regulator’s nod.

The pre-requisite for this is a minimum net owned fund of Rs 100 crore and subject to such terms and conditions as the Reserve Bank may specify in this regard from time to time, the RBI master direction said.