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Privacy Pinch Hits OneCard: RBI Says 'No New Cards' Till Terms Tidy

Swarnadwip Nath Published Dec 07, 2025, 09:39 AM Updated Sep 16, 2026, 03:44 PM

The RBI has directed all OneCard partner banks to halt new credit card issuances until FPL Technologies clarifies data-sharing practices with lenders like Federal Bank and South Indian Bank. This regulatory clampdown hits the fintech unicorn amid tighter co-branded card norms, stalling customer growth.

RBI's Data Dilemma Hits Fintech Hard

The Reserve Bank of India (RBI) has instructed partner banks to immediately pause issuing new co-branded credit cards under the OneCard brand operated by FPL Technologies. This move stems from regulatory concerns over data-sharing arrangements between OneCard and its banking partners. Existing cards remain unaffected, but new customer acquisitions are frozen pending clarifications.

OneCard, founded in 2019 by ex-ICICI Bank executives, boasts over $111 Mn in funding from Peak XV Partners and QED Investors, with FY24 revenue surging 163% to INR 1,425 Cr despite INR 401 Cr losses. Partner banks including BOB Cards, SBM India, Federal Bank, CSB Bank, South Indian Bank, and Indian Bank handle issuance while FPL manages acquisition.

Core Regulatory Triggers

RBI seeks explicit details on how customer data flows between fintech and banks to ensure compliance with privacy and operational norms. This follows a pattern of scrutiny: In March 2024, Federal and South Indian Banks halted similar programs, later redesigning them. Scapia recently resumed with Federal Bank post-approval.

Industry sources indicate banks must align on a uniform partnership model before issuances restart. Neither RBI nor OneCard has commented officially.

Key Developments at a Glance

Immediate Suspension: New OneCard issuances stopped across all partner banks.
Data Focus: RBI probes sharing norms for compliance.
Unaffected Base: Current cardholders face no disruption.
Recent Precedents: Federal, South Indian Banks reworked deals post-2024 pauses.
Fintech Growth Hit: Stalls OneCard's expansion amid rising revenues.
Broader Crackdown: RBI tightens co-branded card ecosystem.