Paisabazaar’s Post

InCred Event Update: SBI Card: RBI circular on arrangements with card networks will require superior sourcing 1. The Reserve Bank of India (RBI) has issued a circular dated March 06, 2024, whereby they have restrained any credit card issuing company (Bank or NBFC) to enter into any agreement with card networks that restrain the customer from availing the services of other card networks. Additionally, the card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. 2. Though the current norm was already under draft notification, it will necessitate the card issuing company (including major banks and NBFCs) to strengthen their card issuing framework to make end customer aware about the options available on card network side. This will require additional efforts for new to card customers who are prime customer base for SBI Cards. 3. We have downgraded SBI card to REDUCE with Target Price of Rs500 post RBI’s tightening of risk weight for NBFCs lending by banks as well as on unsecured lending undertaken by NBFCs including credit cards. The circular has resulted in a steep decline in Tier-1 by ~4.5% to ~16.3% which may result in credit growth slowdown in the coming quarters as well as pressure on margins amid rising risk weight for banks for lending to SBI Cards or SBIC as well as a weaker trend in the revolver rates. Credit - Jignesh Shial, InCred Equities & Beat The Street #rbi #sbi #downgrade #cards

📣 Attention Credit Card Users! The Reserve Bank of India (RBI) has issued a new circular RBI/2023-24/131 CO.DPSS.POLC.No.S1133/02-14-003/2023-24 that brings significant changes to the credit card issuance process. Key Highlights: 1. **Freedom of Choice**: Card issuers are now required to provide an option to their eligible customers to choose from multiple card networks at the time of issue. 2. **Renewal Options**: For existing cardholders, this option may be provided at the time of the next renewal. 3. **Exclusions**: The directions shall not be applicable to credit card issuers with the number of active cards issued by them being 10 lakh or less in number. Card issuers who issue credit cards on their own authorized card network are also excluded from the applicability of the circular. These changes will be effective six months from the date of the circular. Remember, your choice matters! Always make an informed decision when it comes to your financial products. Stay updated, stay informed! #RBI #CreditCard #DebitCard #CustomerChoice #RuPay #Visa #MasterCard

RBL Bank plans to keep up its co-branded credit card ties with its biggest partner Bajaj Finance, said chief of the credit card business Bikram Yadav. The lender has around 48 percent of its co-branded credit book with Bajaj Finance. To be sure, there were news reports in December last year about the central bank expressing concerns about the co-branded partnership between the bank and the last consumer non-bank. Apparently, the co-branding contract between the two parties has been extended only for a year by the regulator and is set to end by December. Other than the branch-led focus, the bank had in the past few months brought in more co-branded partners and partnerships which will now get a bigger share of the pie. https://lnkd.in/gdvz2ny3

#PersonalFinance | Top lenders such as State Bank of India, ICICI Bank, Axis Bank & others have modified rules related to #CreditCard rewards and lounge access benefits from today (April 1) Here are key things that cardholders should know | Anshul Majumdar

#EngageBytes Opinions on the devaluation approaches of the Axis Magus and SBI Cashback Card The Axis Magnus, previously lauded for its outstanding benefits, chose to nullify its unique selling proposition (USP) by altering key benefits such as the monthly milestone reward and points transfer ratio. This move fundamentally altered the card's appeal. On the contrary, the SBI Cashback Card retained its primary USP of offering 5% cashback on online spending but imposed restrictions on various other fronts, such as revoking lounge access, limiting cashback on certain merchant category codes (MCCs), capping maximum cashback, and reducing credit limits* In evaluating which approach is better, it may appear that SBICard's strategy, while still modifying benefits, might face less backlash in public opinion. This is likely due to the card's positioning as an entry-level variant. However, Axis Bank's decision faced greater scrutiny since its card directly competed with the premium HDFC Infinia. Share your thoughts on this perspective! Disclaimer- Views are solely my own and not of my employer. #creditcards #india #SBICard #axisbank #bytes #hdfcbank

Latest News September brings new credit card rules: increased RuPay rewards, HDFC caps, IDFC payment changes, and RBI's network choice mandate. Here's all you need to know

Indian banks, including SBI Bank, HDFC Bank, ICICI Bank, and Axis Bank, have significantly revised their credit card rules and offerings. Explore the noteworthy changes. #newsupdate #newsupdates #newsfeed #newsflash #finance #indianews #newsindia #financenews #interestrates #interestrate #credit #creditcard #creditcards #creditcarddebt #axisbank #icicibank #hdfcbank #sbi

Credit Card: You also have credit cards of these banks including SBI, HDFC, there have been changes in the rules, it will affect you. #Changesincreditcardrules #ChangesincreditcardrulesAxis #CreditCardRules #HDFCBankhaschangedcreditcardrules #SBIchangedcreditcardrules

RBI banned Kotak Mahindra Bank to onboard new customers through digital channels like website and app and also banned issuance of new credit cards. The ban has been imposed due to deficiencies in bank’s IT system both in terms of operational capabilities and IT security. The ban is for indefinite period and will be reviewed once an RBI approved external auditor audit its IT system and gives satisfactory report. Kotak Mahindra Bank will continue to serve its existing customers through both online and offline modes. Similar actions by RBI in past few years Banned HDFC Bank for issuing new credit cards in Dec’20. The ban was lifted in Aug’21…. After 9 months . While ban on HDFC was only on onboarding new credit card customers, the latest ban on Kotak Mahindra Bank includes all kind of new customers (like bank accounts, loans rtc) onboarding through digital channels Ban on Bank of Baroda World app in Oct’23 Ban on Bajaj Finance's eCOM and Insta EMI Card in Nov’23 Ban on PayTM Payment Bank and its wallet on credit transactions in Feb’24 account Press Like button and Repost if you found it informative 😊

State Bank of India I recently visited the SBI branch (SBIN0002166) to request a cheque book, only to face a surprising and disappointing experience. The branch is now charging customers for a single A4 page of the cheque book request form, which is quite unexpected. To make matters worse, the employees at the branch informed me that I should purchase the cheque book request form from another shop, instead of providing it directly at the bank. This approach not only adds unnecessary inconvenience for customers but also raises concerns about the accessibility and transparency of essential banking services. Additionally, I have tried reaching out to SBI's toll-free customer support numbers for assistance, but have not received any support. State Bank of India, I urge you to address this issue promptly. Customers should not have to pay for basic forms or face unnecessary hurdles to access standard banking services. Transparency and customer support are crucial for maintaining trust and satisfaction. #SBI #CustomerService #Banking #CustomerExperience #Complaint #Transparency #Support