Homefinance news

SBI Cards gets more time to implement credit card norms but Street remains cautious

SBI Cards gets more time to implement credit card norms but Street remains cautious

By CNBCTV18.com  IST (Published)

Mini

Even as the extended deadline for implementation of certain provisions for debit and credit cards to October 1, 2022, comes as a relief for SBI Cards, D-Street investors have turned cautious.

Shares of SBI Cards and Payment Services declined on Wednesday, even as the payment solutions provider got an extension to implement key norms on credit cards as mandated by the Reserve Bank of India (RBI).
SBI Cards shares fell more than 2 percent in early trade and the stock was trading 1.3 percent lower at Rs 710.60 on BSE at 11:24 am. Barring a select few sessions, the stock has been on a downhill through June, though amid an overall cautious trend in the market.
In 2022 (year-to-date), the stock has erased more than 23 percent of investors’ wealth as against the benchmark index Sensex, which has slipped a little more than 11 percent.
Here’s how the stock has performed in the past week:
Wednesday’s downtrend comes alongside an overall weakness in the market. Even as the extended deadline for implementation of certain provisions for debit and credit cards to October 1 was a relief for SBI Cards, investors have turned cautious.
The deadline extension was announced a day after the RBI issued a clarification on wallets and prepaid cards, saying non-bank institutions cannot load credit lines into these instruments. This had led to the SBI Cards stock soaring.
Deadline extended for these provisions
Card issuers will have to seek one-time password (OTP)-based consent from the cardholder for activating a credit card if the same has not been activated by the customer for more than 30 days from the date of issuance. If no consent is received, the issuer shall close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customer.
Card issuers shall ensure that the credit limit, as sanctioned and advised to the cardholder, is not breached at any point in time without seeking explicit consent from the cardholder. Further, there should be no capitalisation of unpaid charges/levies/taxes for charging compounding of interest.
The deadline for the implementation of the rest of the provisions of the debit and credit cards remains unchanged, the RBI added.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!