Allowing #NBFCs to issue #CreditCards will be a positive move. The possible explanation of RBIs reluctance till now is the risk of customer exploitation with hidden charges, fine print and high rates.
However with the improvements in NBFC sector, both financial and governance, over the last decade, there is no reason why they should be kept outside #CreditCards business.
Credit Cards contribute <7% to the total card volume (Total 67 mn Credit cards and 934 MN Debit cards). Presently NBFCs are required to tie up with a bank to issue cards. Allowing them to issue cards directly can take penetration much deeper, beyond banks.
It also helps them deliver better in retail lending, helping diversify #PortfolioRisk. May also greatly help new age #DigitalLenders and #Fintech.