New Student Offer - HELLO

Join Here

RBI allows NBFC to Issue Credit Cards

Published on April 22, 2022
Current Context: The Reserve Bank of India has allowed NBFCs to issue new credit cards, provided they fulfil certain criteria.
RBI allows NBFC to Issue Credit Cards
  • NBFCs ( Non Banking Financial Company ) is a shadow bank that has been entrusted with the responsibility of providing loans to the individuals and firms except for non-issuance of debit, credit cards, Demand Draft, acceptance of deposits, etc.
  • However, RBI has come up with a new guideline under which an NBFC would be able to issue Credit Cards, with the prior approval of the Central Bank (RBI). Such NBFCs need to meet the criteria of having a net worth of not less than 100 crore Indian Rupees.
  • The RBI has also allowed the Urban Co-operative Banks to issue credit cards; they would also be subjected to the prior approval of the Reserve Bank of India.

Question:

Q.1 What should be the net worth of a Bank to issue credit cards, as per the RBI rules?
a. 100 Crore
b. 200 Crore
c. 150 Crore
d. 400 Crore
ebook store

About Me

Ramandeep Singh

Ramandeep Singh - Educator

I'm Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and over 5000 successful selections, I understand the path to success firsthand, having transitioned from Dena Bank and SBI. I'm passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu