OneCard may resume credit card issuance after the Reserve Bank of India appointed an audit firm to conduct a unified review of its partnership and data-sharing framework, sources aware of the matter said.
The fintech firm, operated by FPL Technologies, is currently in discussions with the regulator through its partner banks to restart co-branded card issuance. Issuing banks including Bank of Baroda, CSB Bank, Federal Bank, IDFC FIRST Bank, SBM Bank India, South Indian Bank, and Indian Bank have also approached the regulator for clarity on restarting onboarding and card issuance.
The development follows action in December last year, when the RBI reportedly asked partner banks to halt onboarding of new OneCard customers to review data-sharing arrangements.
According to sources, the audit will assess compliance structures, data-sharing practices, and the partnership framework. Its outcome will determine when new card issuance can resume, a process that may take three to six months.
Queries sent to OneCard and its partner banks did not elicit a response till the time of publication.
A similar case involved Scapia, which resumed co-branded card issuance with Federal Bank after receiving regulatory approval last year. Earlier, in March 2024, the Reserve Bank of India had asked Federal Bank and South Indian Bank to stop issuing such cards due to regulatory concerns, impacting Scapia's operations.
OneCard reported a 32% increase in operating revenue to Rs 1,878 crore in FY25 from Rs 1,425.5 crore in FY24, while losses declined 26% to Rs 297.5 crore.
According to TheKredible, the company has raised over $270 million to date from Peak XV, Z47, QED Investors, and Better Tomorrow Ventures.
The outcome of the audit and regulatory review will be key to determining when OneCard can restart card issuance. The episode also highlights the increasing regulatory focus by the RBI on partnership structures and data practices, which could shape how co-branded credit card models evolve going forward.