RBI may permit NBFC to offer credit cards??
RBI may permit NBFC to offer credit cards??
A big change can be seen in the credit card industry soon, according to a business Standard report, the reserve bank of india (RBI) is now considering allowing non-banking finance companies (NBFCs) to issue credit cards as well.
Who gets a credit card facility?Only three or four percent of the people in india get credit card facilities. Banks offer this facility only to their prime or super-prime customers, due to which a large section is considered eligible for the credit card. NBFCs or fintech startups want to connect this large part with the credit card business. RBI will work on some policies before authorizing NBFCs, it may set a minimum net worth that only NBFCs with such a minimum net worth can enter the credit card business.
RBI circular:RBI circular states that RBI will continue to issue terms and conditions in this regard. According to a statement, 44 percent of the funding received by the Fintech industry in the year 2020 went to startups related to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital loans. With this, the outlook of this sector looks quite positive. In the coming times, new alliances can be seen between the old and new companies established in this field. The report said that 'unlicensed wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital credit cards and loan distributors should be allowed to correct financial inclusion'. Till now only two NBFCs have issued credit cards. This includes sbi cards and BOB cards and both are operated by the government.
A big change can be seen in the credit card industry soon, according to a business Standard report, the reserve bank of india (RBI) is now considering allowing non-banking finance companies (NBFCs) to issue credit cards as well.
Who gets a credit card facility?Only three or four percent of the people in india get credit card facilities. Banks offer this facility only to their prime or super-prime customers, due to which a large section is considered eligible for the credit card. NBFCs or fintech startups want to connect this large part with the credit card business. RBI will work on some policies before authorizing NBFCs, it may set a minimum net worth that only NBFCs with such a minimum net worth can enter the credit card business.
RBI circular:RBI circular states that RBI will continue to issue terms and conditions in this regard. According to a statement, 44 percent of the funding received by the Fintech industry in the year 2020 went to startups related to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital loans. With this, the outlook of this sector looks quite positive. In the coming times, new alliances can be seen between the old and new companies established in this field. The report said that 'unlicensed wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital credit cards and loan distributors should be allowed to correct financial inclusion'. Till now only two NBFCs have issued credit cards. This includes sbi cards and BOB cards and both are operated by the government.