What is the net worth amount for scheduled commercial

Solution

Reserve Bank of India has published directions to the banks and NBFCs (Non Banking Financial Corporations) for issuance of credit and debit cards. These guidelines will be effective from July 1, 2022, the guidelines apply to all the banks excluding payment banks, state co-operative banks, and district central co-operative banks. Apart from the banks, NBFCs which have been permitted by RBI to issue credit cards, will also have to follow the guidelines. A company’s board would also need to give its nod for the issuance and conduct of credit cards, and an audit Committee also needs to be set up to review their credit card operations on a half-yearly basis. KYC norms as issued by RBI from time to time, also need to be strictly adhered to in respect of all cards issued, including the co-branded cards. Scheduled Commercial Banks (SCBs) with net worth of Rs 100 crore and above are permitted to undertake credit card business either independently or in tie-up arrangement with other card issuing banks/NBFCs with the approval of their Boards. A NBFC registered with the RBI shall not undertake credit card business without prior approval of the RBI.