Biznextindia: Following RBI’s restriction on Mastercard from on-boarding new domestic customers, RBL Bank on Thursday said that it could affect its new credit card issuances till there is more clarity from the central bank on issuance of new cards.
The private sector bank, which issues credit cards only on Mastercard network, further said that it has entered into an agreement with Visa Worldwide Pte. Limited (Visa) yesterday to issue credit cards enabled on the Visa payment network. Bank expects to start issuance of credit cards on the Visa payment network post the technology integration which is expected to take 8 to 10 weeks.
With about 3 million credit card customers RBL bank currently controls 5 percent market share and is the fifth largest credit card issuer in the country.
The Reserve Bank of India (RBI) on Wednesday imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22 for non-compliance of RBI directions on Storage of Payment System Data.
However, RBI had made it clear that this order will not impact existing customers of Mastercard.
Mastercard is a Payment System Operator authorised to operate a Card Network in the country under the PSS Act.