Finance
RBI open to let NBFCs in credit card business
The Reserve Bank of India (RBI) has hinted at the possibility of allowing non-banking financial companies (NBFCs), including non-deposit taking ones, to undertake 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.
Source:IE
