RBI bans mastercard !! Icici, Axis, Kotak, HDFC bank affected - YP Buzz

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                                  Reserve Bank of India's decision to suspend Mastercard's entry into new customers for its inability to meet data processing rules will hurt some banks more than others.

While most banks operate on both credit card networks, some credit cards, especially co-branded cards, are issued only in conjunction with one or the other. As such, banks and non-banks relying heavily on co-branded cards, based on the Mastercard network, will be severely affected.

                                                                          
Cards

In a report on Thursday, Nomura declared among credit card issuers, RBL Bank Ltd., Yes Bank Ltd. neBajaj Finserv Ltd. lending is likely to have a significant impact. HDFC Bank Ltd. has its 60% card schemes covered by Mastercard, Amex, and Diners, while Axis Bank Ltd. and ICICI Bank Ltd. this is 35-36%. Kotak Mahindra Bank Ltd. Card

HDFC Bank Ltd. has its 60% card schemes covered by Mastercard, Amex, and Diners, while Axis Bank Ltd. and ICICI Bank Ltd. this is 35-36%. Kotak Mahindra Bank Ltd.'s card portfolio is fully connected to Visa so it will not face any issues.

Nomura, however, said donating individual card plans to make a full profit was unknown. Since HDFC Bank is already banned from issuing new cards, it is no longer affected. Banks have already started building tie-ups with Visa to replace Mastercard communications.

In an exchange announcement on Thursday, RBL Bank declared it had entered into an agreement with Visa to issue credit cards to its customers. But technical integration can take 8-10 weeks. Axis-Flipkart card and the ICICI Bank-Amazon card are the fastest growing cards in the market. These card schemes are 14% and 15% of the other cards from Axis Bank and ICICI Bank, respectively.

While the Amazon-ICICI card is compatible with Visa, the Flipkart-Axis card is compatible with Mastercard, which is why it can be a medium-term risk, if the current situation persists, say marketers.


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