Future gets RBI nod for credit card

MUMBAI:
Even as Kishore Biyani's Future Capital Holdings (FCH) expects blessing from Sebi
on its projected initial populace offering, the company have got the nod from RBI
for its recognition card venture. The fiscal services arm of
the Future grouping have tied up with the country's biggest private sector depository financial institution -
ICICI Depository Financial Institution - to establish Future Card, a credit-cum-loyalty card which will offer
customers a batch of price reductions and benefits across Future Group
stores. Customers will receive
four loyalty points for every Rs 100 spent at Future group's retail stores,
including Pantaloons, Central, Big Bazaar and Food Bazaar and one loyalty point
for every Rs 200 spent outside the group's retail stores. Apart from recognition cards, FCH
plans to offer place equity loans, money transportation services and administer mutual
funds, life and general coverage products. The fiscal services retail
offerings is housed under Future Money and the direction may look at the
possibility of hiving this off into a separate entity. At present, Future Money,
through its 60-odd outlets, supplies consumer durables, piece of furniture and personal
loans. Interestingly, the
Future Group already have a co-branded credit card with ICICI Bank, named ICICI
Bank Big Bazaar card. However, unlike the benefits of Future Card, this card can
only be used at Big Bazaar outlets. FCH will give the 5 lakh-plus existing
holders of ICICI Depository Financial Institution Big Bazaar card the option to transmigrate to Future Card. According to the arrangement
between ICICI Depository Financial Institution and FCH, the depository financial institution will find the footing and statuses of
the Future Card and will be responsible for aggregation and recovery of all
charges and fees owed from card clients while FCH will be responsible for
marketing and distributing the recognition card and for collecting applications from
customers. FCH will receive
from ICICI Depository Financial Institution an acquisition fee of Rs 600 for every new recognition card issued,
with a proviso for an yearly escalation, and also have incentive
commissions based on a per centum of client passes which are 0.7% for spends
within Future Group formattings and 0.2% for passes in other outlets.