RBI says non-banks need approval to issue credit cards, lists more rules

Minimum net-owned fund mandated at Rs 100 crore; cards cannot be unilaterally upgraded.

Non-banking finance companies (NBFC) will need approval from the Reserve Bank of India (RBI) to issue credit cards, said the regulator said on Thursday.

Companies will need a certificate of registration. Net-owned fund of Rs 100 crore will be a prerequisite for entering the credit card business for any finance company, including a non-deposit taking one.

“Without obtaining prior approval from the Reserve Bank, NBFCs shall not issue debit cards, credit cards, charge cards, or similar products virtually or physically,” RBI said while updating the master direction on credit and debit cards.

The RBI said that regional rural banks can