NBFCs must be allowed to issue Credit Cards. Why ??
Why do they need an Issuer Bank for BIN, and not directly participate in the payment system? I know the payment system has certain guidelines and restrictions but why do we assume that NBFCs will not be able to adhere to it.
I feel payment systems must be opened for more non-bank players..
– It will help to digitalise more transactions
– Will bring more cost-efficiency
– Give more transaction insights on how the credit is being used,
– The reduced hassle of verifying bank account number IFSC through penny drop etc
– Please suggest more….
Let them also incentivise their customers through Point systems, let them reward good customers..
What are the reasons NBFCs are not allowed to issue credit card directly through their own BIN and participate in the PaymentSystem, please help me to understand it.