RBL Bank on Thursday said that it has entered into an agreement with Visa Worldwide to start issuance of credit cards on the Visa platform, the lender informed the indices. The bank also added that it will be able to issue the new cards after technology integration which is expected to take 8 to 10 weeks.
“Our bank’s current run rate of approximately 1,00,000 new credit card issuances per month could potentially be impacted till such time that there is clarity from the regulator on issuing new credit cards on the Mastercard network or till the technical integration with Visa is complete,” RBL Bank said in a regulatory filing.
RBL said that it awaits further information from Mastercard on RBI’s supervisory action.
The Reserve Bank on Wednesday indefinitely barred the US-based Mastercard from issuing new credit, debit, and prepaid cards with effect from July 22 for its failure to comply with data storage norms. The ban takes effect on July 22. The RBI said its decision will not impact existing Mastercard customers.
Mastercard, a major card issuing entity in the country, is the third company to have been barred by RBI from acquiring new customers after American Express Banking Corp and Diners Club International over local data storage issue.
RBL Bank has around three million credit card customers and is the fifth largest credit card issuer in the country with a 5% market share, the bank said in a statement