Federal Bank stops issuance of new co-branded credit cards following RBI directive

Federal Bank has stopped issuing new co-branded credit cards, citing regulatory guidance from the Reserve Bank of India (RBI). The move comes as part of the bank's commitment to rectify areas of deficiency outlined in a letter from the RBI and to ensure compliance with regulatory standards.

The Federal Bank, in its notice, assured customers that it is actively working to address the identified issues and will seek regulatory clearance before resuming the issuance of new co-branded credit cards.

Despite the temporary suspension of new co-branded credit card issuance, the Federal Bank said it remains committed to serving its existing customers who currently hold co-branded credit cards.