Federal Bank To Request RBI For Reinstating Co-Branded Card Business In 45-60 Days

The Federal Bank Ltd. will request the Reserve Bank of India to reinstate their co-branded card business in the next 45-60 days as the lender has worked through most things regarding this with the regulatory, according to Executive Director Shalini Warrier.

Warrier told NDTV Profit on the sidelines of Global Fintech Fest that its cards business is a small portion of overall business and the bank is working towards addressing co-branded cards concerns.

"Pursuant to a letter from the Reserve Bank of India, dated March 12, 2024, we have stopped issuance of new co-branded credit cards," the bank had said in an exchange filing on March 13.

"The bank is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance," it added.

On whether UPI should be free or not, Warrier said that his personal view has been that it has to be self-sustaining and it "has to have a charge structure."

She also noted that banks are heavily investing in UPI and they have gotten support from the Ministry of Electronics and Information Technology for the same.

At 12:44 p.m., the stock was trading 0.7% lower at Rs 195.56, compared to a 0.3% rise in the Nifty.