On March 13, Federal Bank said it has stopped issuance of new co-branded credit cards and is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance
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.
Poonawalla Fincorp plans to launch co-branded credit cards this quarter after receiving approval from the RBI. The credit cards will complement their existing product basket and make them an active participant in the payment ecosystem. The strategy for the credit card business includes offering it to their existing customer base and using it as a bundled offering for new customer onboarding. Poonawalla Fincorp aims to be embedded in the payments ecosystem and be a part of their customers daily routine.
Co-branded credit cards, such as the one offered by HDFC and Swiggy, are popular among customers for their rewards and benefits. However, there are several issues, including unclear terms and conditions, low cashback rewards, and difficulties in customer service. Despite the problems, the HDFC-Swiggy card remains attractive for frequent Swiggy users.
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