RBI, NBFCs in early talks to open up credit card business in India

To breathe life into 2004 circular on shadow banks' entry into this space

The credit card business in the country may be in for a major shift. The Reserve Bank of India (RBI) and a few shadow banks are said to be in exploratory talks over the possibility of allowing the latter to issue credit cards on a standalone basis in a first-of-its-kind move.

So far, non-banking financial companies (NBFCs) can only issue co-branded credit cards with banks.

This development comes 18 years after the central bank’s circular of July 7, 2004, which stated: “Any company, including a non-deposit taking company, intending to engage in this activity (credit cards) requires a Certificate of Registration, apart