SBI Cards up as RBI restricts shadow banks from issuing credit cards without approval

SBI Cards & Payment Services shares jumped on Friday, after the RBI restricted shadow banks from undertaking the credit card business without the regulator's approval. The SBI Cards stock gained by Rs 19 or 2.4 percent to end at Rs 815.2 apiece on BSE, having risen to as much as Rs 826.8 during the session.

Shadow banks -- the non-banking financial corporations -- will need prior approval of the RBI to enter the credit, debit or charge card business virtually or physically.

The RBI also issued a slew of guidelines for card issuers. Commercial banks with net worth of over Rs 100 crore can undertake the credit card business either independently or in partnership with other card issuing banks or NBFCs, according to the RBI.