There is an important update regarding Bajaj Finance Credit Card. The Reserve Bank of India (RBI) has issued a strong letter of displeasure to Bajaj Finance regarding issues in its co-branded credit card operations. Earlier RBI had issued letter dated January 31 and Bajaj Finance replied to that letter on February 22. In the new letter, the RBI has expressed concerns that the company failed to proactively identify and fix operational gaps and vulnerabilities, posing significant risks to customers.
The RBI has criticized Bajaj Finance for taking a reactive approach and not having adequate internal controls in place. The central bank also disagreed with Bajaj Finance’s claim that its role in the co-branded credit card operations was limited only to customer acquisition. Instead, the RBI emphasized that Bajaj Finance plays a core role in the partnership and has access to sensitive customer data, making it responsible for ensuring secure and responsible practices.
The RBI further stated that Bajaj Finance cannot shift its responsibilities onto partner banks or avoid accountability toward customers. The central bank made it clear that as a co-branding partner, Bajaj Finance holds direct responsibility in maintaining secure and compliant operations.
In the letter, the RBI issued specific directions to Bajaj Finance, including:
- The company must closely monitor and strictly follow project timelines.
- It must conduct an independent external audit, which requires prior approval from the RBI.
- The audit must cover data security, IT systems, information security, and cybersecurity controls.
- If Bajaj Finance wishes to resume any co-branded card partnerships in the future, it must obtain explicit permission from the RBI’s Department of Supervision.
Earlier, Bajaj Finance had announced that it would stop issuing new co-branded credit cards in partnership with RBL Bank and DBS Bank. However, it had assured that existing cardholders would continue to receive services as usual from their respective banks.
This move by the RBI highlights the regulator’s growing focus on consumer protection, data security, and the responsibilities of non-banking financial companies (NBFCs) in co-branded credit card arrangements.
