RBL Bank fell 1.51% to Rs 215.5 after the Reserve Bank of India barred Mastercard from onboarding any new customers.
The Reserve Bank of India (RBI) imposed restrictions yesterday on Mastercard Asia/Pacific (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from 22 July 2021.RBL Bank currently issues credit cards on the Mastercard network only. The debit and prepaid cards issued by the bank are already enabled on other payment networks in addition to the Mastercard network.
As of date RBL Bank has approximately 3 million credit card customers and is the fifth largest credit card issuer in the country with approximately 5% market share.
Separately, RBL Bank said it has entered into an agreement with Visa Worldwide ("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.
In the interim, RBL further added that its current run rate of approximately 100,000 new credit card issuances per month could potentially be impacted till such time that there is clarity from the regulator on issuing new credit cards on the Mastercard network or till the technical integration with Visa is complete.
In a notification issued on Wednesday evening, RBI said, "The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from onboarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.
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RBL Bank is a private sector bank. The bank added 26 branches during Q4 FY21 taking total number of branches to 429 as at 31 March 2021. In addition, the bank also has 1,365 business correspondent branches, of which 260 are banking outlets.
The bank reported 34.1% drop in net profit to Rs 75.34 crore on 3.6% decline in total income to Rs 2,610.83 crore in Q4 FY21 over Q4 FY20.
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