Citibank to partner with Reliance Retail
Citibank and Reliance Retail are coming together in a venture that will see Reliance Retail distribute Citi’s products like loans and credit cards. The new company, with an investment of around Rs.500 crore, is expected to function somewhat as a non-banking financial company (NBFC), with both entities being equal partners.
There is also a proposal to bring out a co-branded card, which will be an addition to the numerous such cards already in Citi’s card portfolio.
The financial markets are in a state of turmoil, and there is a tussle between card issuers and regulator over what constitutes fair interest rates. At such times, people often borrow cash on the card, make other purchases, and suddenly find themselves unable to pay up, leading to an increase in payment defaults.
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