Indian private sector lender RBL Bank has entered into a partnership with Visa to issue credit cards.
The move comes after the central bank of the country blocked Mastercard from adding new customers.
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In a regulatory filing, RBL Bank said: “RBL Bank has entered into an agreement with Visa yesterday to issue credit cards enabled on the Visa payment network.
“RBL Bank expects to start issuance of credit cards on the Visa payment network post the technology integration which is expected to take 8 to 10 weeks.”
The lender issues around 100,000 credit cards every month.
Meanwhile, RBL Bank anticipates a short term impact on future card issuances till the technical integration with Visa is complete or there is further clarity on issuance of Mastercard offerings.
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By GlobalDataRBL Bank is the fifth largest credit card issuer in the country with around 5% market share. The lender has a credit card customer base of 3 million.
Currently, RBL Bank issues credit cards on the Mastercard network only.
Earlier this week, Reserve Bank of India (RBI) imposed restrictions Mastercard from adding new domestic customers. The decision will become effective from next week on debit, credit or prepaid issuances.
The global payments giant was blocked for violating local data storage rules.
According to a 2018 circular, all payments data should be stored exclusively in India to give regulator access to transaction details.
