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.

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

 

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.

 

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

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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