In a first first-rate movement, the India Reserve Bank (RBI) is in discussion with some non-bank financial companies (NBFC) on the possibility of delivering credit cards on an autonomous basis, according to a report Standard of companies. So far, NBFC can only issue co-marked credit cards with banks.

This comes as much as 18 years after the RBI released a circular on July 7, 2004, which stated that any company, including a non-deposited company, the intention to participate in the activity of credit cards. Certificate of registration, except from the specific permission to enter the company – and the prerequisite for which is a minimum net fund of 100 Core of Rs.

The RBI can specify the subject to these terms and conditions of this name from time to time, according to the circular. The circular has not placed any regulatory ban on credit cards issuing NBFCs.

Consumer credit landscape has now changed and authorities can revisit this area. The circular of July 7, 2004 is linked with the Central Bank’s comments in the “Report of the Working Group on Digital Loans via Online Platforms and Mobile Applications”, which was put to public comments last November.

The report stressed that 44% of Fintech in 2020 funding went on digital loan startups and sector outlook is positive with more funding and increased collaboration between established actors and new players in the market. Lenders. digital.

Digital credit cards and credit lines must be allowed to operate unlicensed to further improve financial inclusion, the added report.

In addition, a joint report of the Government’s Thought of Reflection of Niti Aayog and Mastercard last year highlighted NBFC account for 20 to 30% of general credit in the system.

So far, only two NBFCs are emitting credit cards – SBI Card and Bob Card – at a time in the state execution space. In the past, three main members of the NBFCS – Reliance Capital, Tata Capital and Bajaj Finance had approached the Central Bank, viting its July 2004 circular, seeking a nod to issue credit cards on an autonomous basis on the Visa Network

At the end of last November, there were 67 million credit cards, compared with 934 million debit cards, which should be considered against nearly 550 million customers with credit office history, according to the last RBI monthly bulletin of 2022..