Impact of RBI’s Mastercard ban: RBL Bank’s credit card issuance rate will be affected

0
RBL Bank said on Thursday its credit card issuance rate would be affected after the Reserve Bank banned Mastercard Asia Pacific from onboarding new credit, debit and prepaid card customers from July 22, because it did not meet data storage standards. RBL Bank, which currently issues credit cards only on the Mastercard network, said on Wednesday it reached an agreement with Visa Worldwide to issue credit cards activated on the Visa payment network.

“Our bank’s current operating rate of approximately 1,00,000 new credit card issuances per month could potentially be affected until the regulator clarifies the issuance of new credit cards on the Mastercard network or until technical integration with Visa is complete,” RBL Bank said in a regulatory filing.

The bank plans to begin issuing credit cards on the Visa payment network after the technology integration, which is expected to take 8 to 10 weeks. He said the company was awaiting further information from Mastercard on RBI’s supervisory action.

“Bank-issued debit and prepaid cards are already activated on other payment networks in addition to the Mastercard network,” RBL Bank said.

It said that to date it has around 3 million credit card customers and is the fifth largest credit card issuer in the country with around 5% market share. The Reserve Bank of India (RBI) on Wednesday imposed restrictions on Mastercard Asia/Pacific (Mastercard) on onboarding new domestic customers (debit, credit or prepaid) to its card network from July 22, 2021. monitoring action will not affect Mastercard customers.

Share.

About Author

Comments are closed.