RBI mulls regulations for credit card cos

MUMBAI: Reserve Bank of India plans to chalk out regulations for companies engaged in the credit card business and proposes to make it mandatory for all players to register themselves with central bank prior to operating as issuers. "The regulations will have to be drawn out...They (companies) have to register," RBI Deputy Governor V Leeladhar told reporters on the sidelines of a CII-organised conference here today. Presently, major credit card providers in the country like Visa and Master Card are operating in affiliation with banks. However, the banking regulator has not set any time-frame for the proposal, Leeladhar said. "This is a new area we will have to look at," he said. Parliament has recently passed the Payment and Settlement Act, 2007, while the regulatory framework for implementing the law is currently being worked out, Leeladhar said. The Act would give more powers to the apex bank in the payment and settlement matters, including in those related to credit cards, Leeladhar said. According to industry sources, non-banking financial companies (NBFCs), not affiliated with banks, are presently not allowed to engage in the credit card business. News source : http://economictimes.indiatimes.com/