Are Small Finance Banks Eligible to Issue Credit Cards | AU Small Finance Bank
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Are Small Finance Banks Eligible to Issue Credit Cards

    There are several small finance banks operating under regulations set by the Reserve Bank of India (RBI) with the main objective to promote financial inclusion by offering banking services for underprivileged and unbanked populations located in remote areas.

    Most of the customers availing services from these banks are people belonging to low-income groups like farmers, daily wage laborers, and workers, among others. Typically, a small finance bank deals with basic lending & deposit needs; however, some are allowed to include other services like issuing Credit Cards only after getting approval from RBI.


    Products offered by Small Finance Banks

    Small finance banks offer banking products for which there is more demand in the priority sector. Most of the services offered are related to lending, but such banks also address the financial concerns of small, medium & large enterprises. Let’s understand what products are offered by the bank.

    • Deposits: Small finance banks allow you to accumulate savings for the future by offering deposit options like Fixed Deposits & Recurring deposits. The advantage here is you get to earn a higher interest on the deposits as compared to interest rates offered by regular banks. For instance, AU Small Finance Bank offers up to 7.61% annualized interest on Term Deposits with a flexible payout option. It is a great option for building additional income.

    • Loans: Small Finance Banks also offer loans to unbanked sections of society. AU Small Finance Bank offers all kinds of asset-backed loans for four-wheelers, MSMEs as well as SMEs.

    • Others: Some small finance banks like AU Small Finance Bank offer asset products like Mutual Funds, Insurance, Debit Cards, Credit Cards, Savings Accounts & Current Accounts. Small Finance Banks can issue Credit Cards or any other additional service apart from the basic banking solutions only after getting the necessary approval from RBI.


    Can small finance banks issue credit cards?

    Regarding the issuance of Credit Cards, RBI has laid down certain rules:

    • RBI has permitted Scheduled Commercial Banks with a net worth of INR 100 crore to issue Credit Cards independently or in collaboration with other card issuing banks or NBFCs after taking the required approval.

    • Scheduled Commercial Banks can set up a separate subsidiary for undertaking Credit Card business. This does not include small finance banks & regional rural banks.

    • RRBs are allowed to issue credit cards in partnership with their sponsor or other banks.


    AU Credit Cards

    AU Small Finance Bank offers a range of Credit Cards uniquely curated to address the distinct lifestyle needs of customers. Right from welcome benefits, accelerated reward points, and cashback to free insurance, you get to experience premium privileges & exciting benefits. The following are the different types of Credit Cards you can avail from us:

    How to get AU Credit Card - AU 0101 App/NetBanking

    You can easily apply for an AU Credit Card online using AU 0101 App/NetBanking. In case you are applying for a card via the app, you need to complete the KYC through a video call & the card will be delivered to your doorstep.

    Once your Credit Card application is approved, you get an SMS intimation from the bank, and subsequently, the card is dispatched for delivery. It takes 7 working days for the card to be delivered.

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