PL Technologies, the parent company of the popular metal credit card OneCard, has suspended the issuance of new credit cards following a directive from the Reserve Bank of India (RBI). As reported by The Economic Times, the central bank has instructed OneCard’s partner banks to immediately pause new customer onboarding while it seeks clarifications regarding data-sharing norms.

According to the ET report, the regulator has issued letters to all of OneCard’s banking partners—including Federal Bank, South Indian Bank, CSB Bank, and BOB Financial—directing them to stop issuing the co-branded cards. The freeze is effective immediately and applies specifically to new applicants.

RBI's Core Concern: Data Control Sources cited by The Economic Times indicate that the RBI's scrutiny focuses on the data-sharing protocols between the licensed banks and the fintech partner. The regulator is reportedly keen to ensure that the partner banks maintain absolute control over credit underwriting and customer transaction data, rather than ceding critical oversight to the technology interface.

Broader Regulatory Impact This development marks another step in the RBI's tightening of the "fintech-led" credit card model. The central bank has previously emphasized that in co-branded partnerships, the licensed bank must remain the primary issuer in both practice and compliance.

The Economic Times report notes that this is similar to earlier regulatory pauses seen in the sector. For instance, the Scapia Federal Bank credit card faced a similar halt earlier this year but resumed issuances after aligning its operations with the RBI's revised frameworks.

Impact on Customers

1. New Applicants: Applications for new OneCards are currently on hold until the partner banks satisfy the RBI's queries regarding their data-sharing structures.
2. Existing Cardholders: There is no impact on current users. Existing OneCards remain fully operational for transactions and repayments.