Bajaj Finance, RBL Bank fall as RBI grants only 1 more year to co-branded credit cards

According to recent reports from CNBC-TV18, the Reserve Bank of India (RBI) has approved a deadline extension for Bajaj Finance’s credit card collaboration with RBL Bank until December 21, 2024. Bajaj Finance had originally requested a more extended period for this partnership. The RBI, so far, hasn’t permitted Non-Banking Financial Companies (NBFCs) to independently issue credit cards, leading many to pursue co-branded options. Bajaj Finance currently has co-branded credit card agreements with both RBL Bank and DBS Bank. The partnership with DBS Bank is relatively new, about a year old, whereas the alliance with RBL Bank dates back to the 2018 financial year.

The RBI has noted “serious deficiencies” in Bajaj Finance’s compliance with regulatory guidelines, resulting in only a one-year extension for its co-branded credit card venture with RBL Bank, as per sources close to CNBC-TV18.

As of 1:15 PM, trading figures showed Bajaj Finance’s stock price at Rs 7,169.95 on the NSE, a decrease of 1.72%, and RBL Bank’s shares fell by 3.3%, reaching Rs 263.45.

RBL Bank Share Price

Rs-260/-

Bajaj Finance Share Price

7162.30/-

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