Banks are reconsidering partnerships with credit-card-based fintech firms

Indian banks are rethinking partnerships with credit-card based fintech firms following recent directives by the Reserve Bank of India (RBI) with respect to the co-branded card segment.

After issuing orders for debit, credit, and co-branded cards in April, several banks contacted the RBI to better understand the regulator's thinking. RBL Bank has informed its co-branding card fintech partners that it will discontinue support services on June 30. "After the regulator began questioning the business models of some of these firms, RBL Bank has been slow in its partnerships with KreditBee and Uni Cards," a person close to the development said. "The RBI was clearly upset that fintech firms were impersonating a credit card on a prepaid bin (bank identification number)."

5 views0 comments