According to the RBI’s amended rules for co-branded credit cards, the card shall explicitly indicate that it has been issued under such an arrangement.
South Indian Bank and Federal Bank won’t be onboarding new customers for their co-branded credit cards, according to exchange filings on Wednesday.
The banks said they will continue to serve existing customers but will put a stop on fresh onboarding till they fully comply with regulatory guidelines.
According to the RBI’s amended rules for co-branded credit cards, the card shall explicitly indicate that it has been issued under such an arrangement.
In all marketing/advertising material too, the name of the card issuer would be clearly shown.
Federal Bank stopped onboarding new customers for the same reason.
South Indian Bank has a co-branded card with the State Bank of India — South Indian Bank SimplySAVE SBI Card and the South Indian Bank SBI Platinum Card.
Federal Bank has its own co-branded credit cards with OneCard, Scapia Technology and FI Brand.
“The bank is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance. The bank continues to offer credit cards to new and existing customers in the non-co-branded segment and will also continue to service the existing customers who currently hold co-branded credit cards issued by the bank,” Federal Bank said in a filing.
