RBL Bank Partners with Mahindra Finance to Launch Co-Branded Credit Cards Targeting Aspiring Customers

RBL Bank Partners with Mahindra Finance to Launch Co-Branded Credit Cards Targeting Aspiring Customers

RBL Bank and non-banking financial company Mahindra Finance announced plans on Monday to introduce a co-branded credit card, marking Mahindra Finance's first credit card offering. The partnership received clearance from the Reserve Bank of India (RBI) and aims to cater to customers’ evolving financial needs, according to Mahindra Finance’s Managing Director and CEO, Raul Rebello.

This initiative is part of RBL Bank's strategy to diversify its credit card distribution network and reduce reliance on its existing partner, Bajaj Finance. Mahindra Finance, a Mahindra Group subsidiary holding a 3.53% strategic stake in RBL Bank, has invested INR 417 crore in the bank to strengthen its strategic alignment.

The new co-branded card aims to deliver unique benefits tailored to the aspirations of customers in both urban and non-metro areas, particularly as e-commerce continues to expand across India. RBL Bank's Executive Director, Rajeev Ahuja, emphasized the focus on providing an all-in-one solution with broad advantages across various categories. This move underscores Mahindra Finance's efforts to leverage technological advancements and capture growth potential, especially beyond metropolitan regions, as per an official statement.

This co-branded credit card partnership comes amid increased scrutiny of credit card portfolios in the banking sector and ongoing regulatory efforts to monitor riskier assets in credit card growth