RBI Bans New Co-Branded Cards | OneCard, Scapia, Fi & More

RBI (Reserve Bank of India) has recently given a big new update regarding New Co-Branded credit cards, which clearly proves that RBI will not spare anyone from committing hooliganism. Because for some time now RBI has been launching RBI new updates one after the other due to which they have stopped the services of all the banks and NBFCs. In this update, RBI bans new co-branded cards of One Card, Scapia, Fi and more.

RBI New Update: RBI Bans New Co-Branded Cards

The master direction issued by RBI regarding credit cards and debit cards has been amended on March 7, 2024 and this time the target is co-branded credit cards. And the result of which was that the Reserve Bank of India has refused to issue New Co-Branded Credit Cards to both the banks Federal Bank and South Indian Bank with immediate effect. Due to which Federal Bank and South Indian Bank have said that now they will not issue new co-branded credit cards.

For your information, let us tell you that Federal Bank issues some co-branded credit cards which include One Card and Scapia credit cards and FI Federal Bank also has three credit cards Amplify, Magnify and Simplify. From now on no one will be able to get all these co-branded credit cards. Because these have been banned by the RBI with immediate effect and both the banks Federal Bank and South Indian Bank have confirmed that from now on these credit cards will not be newly issued.

Why RBI Bans New Co-Branded Cards?

That means from now on you will not get co-branded credit cards like One Card and Scapia. And if seen, it has happened right because some such exploits of One Card have come to light whose result was to be the same. Recently, by issuing the Amended Master Guidelines regarding Co-Branded Credit Cards on March 7, 2024, RBI had said that these Co-Branded Credit Cards are somewhat fabricated. Initially they partner with banks and total transparency is not maintained in this.

And regarding these co-branded credit cards like One Card and Scapia, allegations have been made that they portray to customers as if these products are entirely their own, and the agreement nowhere mentions that this is a co-branded credit card. As a result, the customer gets confused and feels cheated since all the facts are not presented before them. Therefore, to eliminate all such issues, in this update, the RBI has now stated that you will have to clearly show that the credit card issued is a co-branded credit card, and all the details of the associated bank will also be displayed

Along with this, they will have to show everywhere that we are issuing this credit card under co-branded agreement. Recently RBI noticed some deficiencies and it was found that the data of customers is being mishandled and by mishandling it, they are using it wrongly and those who should not have this data are also encrypted. So, due to all the shortcomings, Reserve Bank of India has taken this action on these co-branded credit cards.

There will be no such impact on the existing customers of Federal Bank and South Indian Bank who are already running these co-branded credit cards. But from now on, you will not be able to apply for any new card from One Card, Scapia, and all the credit cards of FI and all the co-branded credit cards of South Indian Bank. And if these banks remove these shortcomings due to which RBI has banned their co-branded credit cards, then after this they can start these services again by taking permission from RBI.

Final Words:

In reality, these fintech companies trouble people by providing them loans without any verification. And if someone defaults later, these companies harass their family members, friends, and everyone else in such an unacceptable manner. The company itself pushes people to take wrong steps, and overall, their way of doing business is utterly poor.

But now RBI has been continuously taking action against all Fintech companies and now RBI Bans New Co-Branded Cards of Federal Bank and South Indian Bank. For this, we would like to thank the RBI, and now the RBI is keeping a close watch that if they commit any malpractice, I will take immediate action against them. At the same time, we request the RBI to continue taking such actions and teach these fintech companies the right way to do business. The way you mistreat people, mishandle their data, and fail to provide proper services, if you do not rectify this, bans like these will continue to be imposed on you.