RBI allows banks to issue debit, co-branded cards without its prior approval

Banks can issue co-branded debit cards without approval: RBI
The Reserve Bank of India (RBI), on Wednesday, allowed banks to issue simple debit cards and co-branded debit cards without seeking its prior approval, in a move that would save time and efforts of both the lender and central bank everyday for every co-branding arrangement.

RBI, however, said that the cards could only be issued as per the norms laid by it and in both the cases of debit cards, bank will have to follow the policies approved by board also.

Strict compliance with Know Your Customer (KYC) norms, Anti-Money Laundering (AML) standards, Combating of Financing of Terrorism (CFT) and obligation of banks under PMLA, 2002 is a must, said the RBI. Besides, RBI also asked banks to discontinue issuing offline debit cards.

"Banks which are presently issuing offline debit cards may conduct a review of their offline debit card operations and discontinue operations of such cards within a period of six months from the date of this circular," said the RBI.

Read more about: debit cards
Story first published: Thursday, December 13, 2012, 9:30 [IST]
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