Global Expansion Strategies for FinTechs in Emerging Markets: A Playbook for Leaders
2nd August 2025
Exclusive
How Open Banking is Shaping Financial Services Globally
QR Codes and the Cashless Leap: Transforming India's Financial DNA
What the Future Holds for Digital-Only Banks: Navigating the Next Era of Banking
Flipkart Gets a Lending Licence: A Bold Leap into Embedded Finance
The Rise of Contactless Payments: Benefits and Security Concerns
Top Fintech Innovations Shaping 2025: The Future of Finance
Biometric Payments: The Next Big Trend in Secure Transactions
.jpg)
The Future of Payments: Trends Reshaping Transactions in 2025
The Role of Cryptocurrencies in Cross-Border Payments
The Impact of 5G on Fintech Services
The Evolution of Fintech Regulation: What’s Next?
How AI is Transforming the Credit Scoring System
Subscribers: 128
Bajaj Finance Faces Regulatory Scrutiny Over Co-Branded Credit Card Operations
News
03 April 2025
2 min read
675
The Reserve Bank of India (RBI) has issued a letter of displeasure to Bajaj Finance concerning its co-branded credit card operations. According to reports, the RBI highlighted the company's failure to proactively identify operational gaps and vulnerabilities, which could pose significant risks to customers.
The central bank criticized Bajaj Finance's reactive approach and inadequate internal controls. It also disputed the company's claim that its role was limited to customer solicitation, asserting instead that Bajaj Finance plays an integral part in the co-branding arrangement and has access to sensitive customer data. The RBI emphasized that the company cannot absolve itself of responsibilities toward partner banks and customers.
In response to regulatory directives, Bajaj Finance has decided to exit the co-branded credit card business. The company ended its eight-year partnership with RBL Bank and its more recent tie-up with DBS Bank India. This move follows the RBI's April 2022 guidelines, which restricted co-brand partners' roles to distribution only, limiting their involvement in collections and other critical activities.
Market reactions have been notable. Shares of Bajaj Finance experienced a decline, trading at ₹8,595, down 0.86% from the previous close of ₹8,669.25. The company's market capitalization stands at ₹5.37 lakh crore.
These developments underscore the importance of robust internal controls and proactive risk management in financial operations. Bajaj Finance's decision to halt its co-branded credit card business reflects a strategic shift in response to evolving regulatory expectations.
References:
-
Moneycontrol
👍 4
💬 0
Read Next
News
Supreme Court Declines to Quash FIR Against HDFC Bank MD Sashidhar Jagdishan; Bombay HC to Hear Next on July 14
News
PhonePe, HDFC Bank Roll Out Co-Branded Credit Card to Boost Digital Spending
Article
The Rise of Contactless Payments: Benefits and Security Concerns
News
Groww's Parent Company Files Confidential IPO Papers, Aiming to Raise Up to $1 Billion
News
RBI Governor Signals Possible Shift from Zero‑Fee UPI Model Amid Surge in Payments
News
India and Singapore Expand UPI-PayNow Integration to Broaden Cross-Border Remittances
×
Live Polls
Live Discussion
Topic Suggestion
Whom Do You Wish To Hear
Leave your opinion / comment here