OneCard’s New Card Issuance Halted: RBI Steps In Over Data and Compliance Concerns
So much for the ‘frictionless credit card’ dream. OneCard, the fintech unicorn that promised millennials a sleek, app-first credit card experience, is now getting the full RBI reality check: a hard pause on new card issuance. The Reserve Bank hasn’t exactly rolled out the red carpet; instead, it’s sent a strongly worded memo to all partner banks saying, ‘Hold my chai, let’s talk about data sharing and compliance first.’ It’s the fintech version of being called to the principal’s office — just when you thought you were cool, the regulator reminds you who’s in charge. For a company that built its brand on speed and convenience, this sudden regulatory brake is less ‘growing pains’ and more ‘you should’ve read the fine print.’
Behind the drama, the RBI is tightening the screws on co-branded credit card arrangements, demanding clarity on how data flows between fintechs like OneCard and their banking partners. The central bank has reportedly asked all partner banks — including Federal Bank, South Indian Bank, CSB Bank, and others — to halt new OneCard issuances until these concerns are addressed. This isn’t an isolated case; over the past year, the RBI has repeatedly paused or forced redesigns of similar fintech-bank card partnerships to comply with revised norms. OneCard, backed by investors like Temasek and Peak XV, had become a unicorn in 2022, but its path has been rocky, with losses still running high. The current pause underscores a broader regulatory message: in India’s financial ecosystem, innovation must play by the rules, especially when it comes to data privacy and systemic risk.
