How equipped is Hylobiz to implement RBI’s credit card directions?

RBI’s Credit Card Directions

Many fintech companies offer credit card-like products and get into an arrangement with Issuers to offer co-branded credit cards.

Why do some fintech companies assume the new RBI rules might pose threat to their business?

The Reserve Bank of India on 21st April 2022, has issued new guidelines (known as Credit Card and Debit Card- Issuance and Conduct) for credit and debit cards effective from 1st July 2022.

Credit card rules might be of concern to some fintech companies.

  • Only banks like SCBs and RRBs with a net worth of Rs 100 crore can issue credit cards to customers who have written consent and should mention every charge detail on the key fact statement.
  • Banks can issue co-branded credit cards and there is no need to seek permission from RBI, but the co-branding partners cannot claim the card as issued by them but are limited to marketing and distributions.
  • Banks are not allowed to share the customer transaction data with their cobranded card partners.
  • NBFCs cannot do credit card businesses without the nod of RBI. NBFCs should have a net-owned fund of INR 100 crore to take explicit permission from RBI in this regard.
  • The card limit sanctioned to the cardholder should not be breached in any case.

Reasons for concern.

  1. Although many top fintech companies treat customer data security as a top priority, they use transactional data with partner banks. These data are analyzed by fintech to offer personalized solutions for customers. RBI’s directions prohibiting transactional data access for customer sourcing partners might put Fintechs at a loss.
  2. The rising credit card debt trap due to misselling by unregulated fintech companies is a serious concern. Since the card issuers such as banks and NBFCs, can issue cards with prior permissions from RBI, many cards focused fintech firms would now tend to seek NBFC licenses to stay in business.

Hylobiz is equipped to follow Reserve Bank of India guidelines.

Hylobiz is pre-integrated with multiple top ERPs and has partnered with multiple banks and NBFCs. Any business registering on Hylobiz can easily integrate their existing accounting platform and bank account via APIs.

Visit to understand our SME offerings:

HyloBiz acts as an enabler for its partner Banks while catering to the customer ecosystem without substituting the Bank’s role, in line with the expectations set out by RBI.

We analyze our registered customers’ business profiles based on the transactions they do on the platform. Top-notch security of bank-grade is what customers can experience at every level on the platform. The platform is ISO certified and secures data with strong encryptions and multi-level authorization. Clearly, we are equipped to implement RBI’s credit card rules.

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About Hylobiz- the all-in-one automated solution.

We are a fintech with an aim is to automate and streamline essential processes in businesses across all industries and verticals.

Top features at a glance

We support invoice and inventory management, payments, collections, auto reconciliation, cash flow visibility, working capital efficiency, and a lot more. The platform tracks AR/AP and automates your business cash flows. The shareable digital ledgers give businesses transparency at the core and our system is transparently backing that up. The automated reports, business health score, and real-time dashboard enable you to make informed decisions on the go. And you get all of these at zero installation charges and at zero second downtime.

You can now comply with GST Council’s E-Invoicing mandate on Hylobiz- powered by Vayana-GSP, India’s largest GST Service provider.

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