OneCard’s access to customer data likely forced some banks to stop issuing co-branded credit cards [Video]

Co-branded card fintech firm OneCard’s access to credit-card customer data is believed to have driven the Reserve Bank of India (RBI) to ask a few banks to stop onboarding new customers on the platform, multiple industry executives have told Moneycontrol.

OneCard has co-branded card partnerships with Federal Bank, SBM Bank, South Indian Bank, Bank of Baroda, Catholic Syrian Bank and Indian Bank.

“In the case of OneCard, it did not have any direct access to customer data but for all the co-branded cards that the banks issued with OneCard, banks were using the credit-card software stack provided by OneCard. This gave OneCard access to customer data indirectly,” a senior executive with a credit-card product company said on condition of anonymity.

According to RBI regulations, only credit-card issuers — banks — can access customer data and not their co-brand partners. For instance, in the case of Amazon Pay-ICICI Bank credit card, the …