RBL Bank and Bajaj Finance Ltd. have mutually decided to stop issuing new co-branded credit cards following discussions that have taken place over the past month. While the change will not affect RBL Bank’s overall credit card business, it marks the end of a significant partnership that previously accounted for a large portion of RBL Bank’s card issuances. As of September 2023, Bajaj Finserv co-branded cards represented 41% of RBL Bank’s total credit card issuances.

Despite this shift, existing Bajaj Finserv co-branded cardholders will continue to use their cards, and these cards can be reissued as RBL Bank-branded cards when renewed. The bank will continue to manage the existing portfolio of 3.4 million co-branded cards and provide customer service.

RBL Bank's decision to end its partnership with Bajaj Finance aligns with its strategy to diversify its co-branded partnerships. The bank has already been reducing its dependence on Bajaj Finance and has entered into new collaborations with companies like Mahindra & Mahindra Finance and TVS Finance, alongside traditional partners like Indian Oil Corporation.

This decision also follows regulatory scrutiny from the Reserve Bank of India (RBI), which raised concerns about the co-branded card partnership and granted Bajaj Finance a shorter-than-expected extension for the collaboration.