Federal Bank has launched its latest credit card product, Fed StarBiz, specifically for business customers. Designed in collaboration with the National Payments Corporation of India (NPCI) and Visa, this new credit card is designed to meet the distinct financial requirements of India’s dynamic small and medium-sized enterprises (SMEs). The launch is Federal Bank’s strategic entry into the business and commercial credit card space.
Fed StarBiz is specially designed to meet the needs of SME customers, providing functionalities that facilitate better financial management and more convenience. The card is directly linked to the customer’s Overdraft (OD) or Cash Credit (CC) account, thus providing complete integration with their current financial setup. With a limit of up to ₹50 lakh, the card offers significant transaction authority while making financial reconciliation easier by having all transactions accounted for in the underlying OD/CC account.
Major features of Fed StarBiz are:
- Daily Transaction Limits: Customers can conduct transactions up to ₹3 lakh per day or the available limit on his/her OD/CC account.
- Security Improvements: Latest tokenization and encryption technologies secure transactions, providing reliability and security.
- Universal Acceptance: The card is offered both in RuPay and Visa versions, allowing usage at millions of merchants across India.
- Streamlined Financial Management: Does away with the necessity of individual statements since all transactions are filed in the connected OD/CC account.
Speaking at the launch, Shalini Warrier, Executive Director, Federal Bank, said: “SME customers are an integral part of India’s growth narrative. At Federal Bank, we have always emphasized offering innovative solutions to help them. Fed StarBiz is a major leap forward in empowering businesses with financial agility and security.”
The partnership with NPCI and Visa reflects the intent of “The Federal Bank” to utilise strong payment infrastructures and high-tech capabilities. Rajeeth Pillai, Relationship Management Chief at NPCI, cited the widespread acceptance base and security offerings of RuPay as key drivers of frictionless business transactions. On the other hand, Visa India Country Manager, Rishi Chhabra stated “Visa’s world-class acceptance level and state-of-the-art security that further helps financial management in businesses.
This customized payment solution will bring more benefits, financial freedom, and flexibility to businesses,” Chhabra said. “We are still committed to empowering businesses of all sizes to succeed.”
Fed StarBiz is merely the initial phase in Federal Bank’s overall plan to deepen its positioning in the payments business ecosystem. The bank has plans to implement further specialist payments solutions throughout the year 2025 in a bid to address varied segments across the business community.
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Federal Bank has been strongly expanding its credit card book throughout the last several years. As per Shyam Srinivasan, Managing Director and CEO of Federal Bank, the bank has been strengthening its digital strength while growing through organic growth and strategic alliances. The bank has already issued more than 3.5 lakh credit cards as part of its aggressive foray into this space. Srinivasan said that segments like commercial vehicles, credit cards, and microfinance have been growing very fast in Federal Bank’s book.
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