- 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
