RBL Bank on Wednesday started issuing credit cards to its new customers on Visa’s payment network. Making the announcement in a press release, the bank informed that the launch came after the successful completion of technology integration with the new platform following an agreement between Visa and RBL Bank on July 14.
RBL bank that has a market share of 5 per cent in the credit card segment in the financial market said that it will use its partnership with Visa to offer a wide range of credit cards to its prospective customers. The bank claimed that the new cards were designed to offer a smart convenient and secure transaction experience along with special rewards for the customers.
Speaking about the launch RBL Bank’s Retail, Inclusion and Rural Business head Harjeet Toor said that the bank was confident of meeting its annual plan of issuing 1.2 to 1.4 million credit cards in FY 22.
The announcement of a partnership between RBL Bank and Visa in July came a day after the Reserve Bank of India banned card US-based Mastercard from issuing new credit, debit and prepaid cards with effect from July 22 over its failure to comply with Indian data storage norms. The decision came as a new challenge for the RBL Bank as it used to issue only Master cards till then. The RBL Bank had said that its card-issuing ability of over 1 lakh cards per month will be affected till the full shift from Mastercard to Visa but the change will be completed in 8 to 10 weeks.
However, Mastercard was not the only company facing such action from RBI. India’s central bank had also barred American Express Banking Corp and Diner Club International from acquiring new customers over local data storage issues.
RBL Bank in Indian today has a customer base of 9.83 million in a network of 435 branches, 1,422 business correspondent branches and 380 ATMs spreading over 28 Indian states and Union Territories.