Urban cooperative banks can't issue co-branded credit cards: RBI

General purpose cards are those that are issued under trademark of credit card associations

Reserve Bank of India (RBI) today in its guidelines on credit card operations by urban cooperative banks (UCBs) said that UCBs are permitted to issue general purpose cards to their customers, but are not allowed to issue co-branded credit cards.

General purpose cards are those that are issued under the trademark of credit card associations (VISA /Mastercard etc) and accepted by many merchants.

RBI also said that UCBs are permitted to issue credit cards to their regular members and nominal members only, but not to non-members. It said that the card issuing banks would be solely responsible for fulfillment of all KYC requirements.

In its guidelines, the banking regulator said that the total unsecured loans and advances (with surety or without surety or cheque purchases) granted by a bank to its members together with cumulative approved credit card limits should not exceed 10% of its total assets as per audited balance sheet as on March 31 of the preceding financial year.