The Reserve Bank of India (RBI) has ordered fintech company OneCard to issuing new co-branded credit cards with its partner banks. The regulator has written to these banks, instructing them to halt fresh issuance until questions around customer data sharing between OneCard and its banking partners are resolved. In recent years, the RBI has taken similar actions against other banks involved in co-branded card arrangements.
OneCard currently partners with BOB Financial, SBM India, Federal Bank, CSB Bank, South Indian Bank, and Indian Bank.
Earlier, Federal Bank and South Indian Bank had also been told to pause their co-branded card programmes, after which they restructured their partnerships to comply with updated guidelines.
According to the RBI, the suspension is temporary and will remain in effect until OneCard and its partner banks implement the necessary corrective steps. The central bank will assess the remediation measures before allowing card issuance to resume. OneCard has confirmed receiving the directive and said it is working with its partner banks to ensure complete compliance. Restrictions will be lifted only after RBI verifies the improvements.
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What is OneCard?
OneCard is a metal co-branded credit card issued through partner banks such as Federal Bank and South Indian Bank. It offers an instant virtual card, spending controls, and reward points that never expire.
Impact on OneCard
The RBI’s order immediately stops OneCard from issuing new cards. The company will also face increased regulatory oversight, and all new customer onboarding and marketing campaigns have been put on hold. While this may affect brand perception, existing cardholders remain unaffected and can continue using their cards normally.
The RBI’s move marks a significant development for India’s fintech and credit-card sector, highlighting stricter compliance and consumer protection standards. The halt is temporary, and OneCard may resume issuing cards once the RBI is satisfied with the updated compliance framework. The company is currently working with partner banks to close the gaps identified by the regulator.
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