RBI restricted issuance of Co-branded Credit Cards by Federal Bank and South Indian Bank. These banks to stop issuing co-branded credit cards following regulatory changes in credit card rules. The Reserve Bank of India has made amendments in master direction for credit and debit card issuance and conduct rules.
Federal Bank has three co-branded credit cards with partnerships with OneCard Scapia Technology Pvt. Ltd and FI Brand Pvt Ltd, targeting mostly the new generation customers. The bank on Wednesday said it is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance.