The bank received the regulatory direction Tuesday. The 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.
“Pursuant to a letter from Reserve Bank of India, dated March 12, 2024, we have stopped issuance of new co-branded credit cards,” the private sector lender said in a regulatory filing.
At the end of December last year, its gross advances through credit cards stood at Rs 2778 crore, which was 153% higher than the year-ago business position. Co-branded credit cards contributed about three-fourth of it.
The bank said it would continue to service the existing customers who currently hold co-branded credit cards issued by it. It will also continue to offer credit cards to new and existing customers in the non-co-branded segment.
