RBI’s Initiative
NBFC’s can get RBI’s permission to issue Credits Cards for customary benefits. The latest information says that the Reserve Bank Of India is consulting with a few Non-Banking Financial Companies (NBFCs) on the subject to issue self-supported credit cards to customers. Till now NBFCs can only issue credit cards by combining their services with other commercial banks. For Example, Paytm also provide financial services and issue credits cards in partnership with SBI. They have been restrained from issuing credit cards and any other services that involve them to issue such charge cards. Even, they can not be allowed to issue debits cards and any card offering postpaid services.
RBI Stated
Once 18 years ago RBI stated on 7 July 2004 to inform the NBFCs. The statement issues that any finance company including Non-deposit taking company needs to fulfill eligibility standards specified by RBI. This means they need permission and a registration certificate to enter into the business. A major precondition for the NBFCs was that they should have the minimum amount of Rs.100 crore as the net-owned fund. This set of rules and conditions are changes over time.
Also read:
Alert! SBI’s New Guidelines To Follow For Steady Services
Do you need Credit Cards?
Credits cards have many benefits if used within certain limits. See, you can easily perform daily financial activities without using Credit Cards. But having one can provide you with the needed financial assistance. you can use these cards as emergency funds when you need financial assistance. They can provide installment services for expensive purchases. Such cards with minimal usage can help you to improve your credit score. They also provide cashless transactions and help you to win rewards according to your purchase limit. If your savings are low or you are out of funds then at that time they can boost your purchasing power.
