India's central bank has instructed South Indian Bank and Federal Bank to cease enrolling new customers for their co-branded credit cards until they adhere to regulatory guidelines. While South Indian Bank will continue to serve existing customers, Federal Bank is rectifying deficiencies before seeking regulatory approval for issuing new cards.
The directive follows recent RBI rules prohibiting co-branding partners from accessing customer data post-card issuance. The exact reasons for the directive remain undisclosed