Federal Bank, RuPay and Visa Jointly Launch Fed StarBiz - a Credit Card for MSME Customers

Business Wire India

Federal Bank, a leading private sector bank in India, announced a new addition to its product portfolio with the launch of Fed StarBiz - a credit card designed exclusively for business customers. This has been launched by Federal Bank in collaboration with NPCI, an umbrella organization for operating retail payments and settlement systems in India and Visa, a global payments technology company. Fed StarBiz is designed to cater to the unique needs of SME customers, offering a range of features and benefits that enhance financial management and convenience.

Fed StarBiz marks Federal Bank's strategic entry into the business and commercial cards segment, with an aim to empower India's vibrant business ecosystem.

Speaking at the launch ceremony, Shalini Warrier, Executive Director at Federal Bank, said, “SME customers play a very critical role in India’s growth and Federal Bank has always been at the forefront of providing innovative solutions to them. In continuation of that journey, we are excited to introduce FedstarBiz, a business credit card. The credit card is available in both Rupay and Visa variants. The card is linked to the customer’s Overdraft or Cash Credit account is designed to provide our business customers with the financial flexibility and security they need to thrive in today's competitive environment.”

Reimagining Business Payments with Fed StarBiz

Fed StarBiz offers a comprehensive suite of features tailored to address the unique challenges faced by business customers:
 

• Seamless OD/CC Integration: The card links directly to existing Overdraft or Cash Credit accounts with limits up to Rs. 50 Lakh, creating a unified financial ecosystem for businesses
• Substantial Transaction Power: Enables transactions up to Rs. 3 Lakh per day or the available limit on the underlying account, whichever is lower
• Enhanced Security Architecture: Advanced tokenization and encryption technologies safeguard every transaction
• Streamlined Financial Management: All card transactions reflect in the underlying OD/CC account, eliminating separate statements and simplifying reconciliation
• Universal Acceptance: Extensive merchant network coverage across India through RuPay and Visa partnerships

Partnership for Innovation

Rajeeth Pillai, Chief of Relationship Management, NPCI, added: "We are pleased to partner with Federal Bank for the launch of Fed Star Biz. This card marks a significant step forward in offering business customers a robust and secure payment solution. With RuPay’s extensive acceptance network and advanced security features, FedStar Biz will empower businesses across India with seamless and reliable transactions.”

Rishi Chhabra, Country Manager at Visa India, stated, “We are pleased to deepen our partnership with Federal Bank with the launch of Fedstar Biz, their first business-focused credit offering. This tailored payment solution will provide businesses with greater benefits, financial control and flexibility, supported by Visa's global acceptance and top-notch security standards. We remain committed to enabling businesses of all sizes to thrive, backed by the Visa promise of trust, security, simplicity and convenience."

Strategic Expansion in Business Banking

The launch of Fed StarBiz represents the first phase of Federal Bank's comprehensive strategy to strengthen its position in the business and commercial payments landscape. The Bank confirms that additional specialized payment solutions are in development, with several launches planned throughout 2025 to address various segments of the business market.

Federal Bank aims to establish itself as the preferred banking partner for businesses through this expanded suite of commercial payment solutions, combining digital innovation with deep understanding of business needs.

For more information about the Fed StarBiz credit card, visit Federal Bank's website www.federalbank.co.in.

About Federal Bank

Federal Bank (NSE: FEDERALBNK) is a leading Indian private sector bank with a network of around 1550 banking outlets and 2054 ATMs/Recyclers spread across the country and the Bank’s total business mix (deposits + advances) stood at Rs. 4.96 Lakh Crore as on 31st December 2024. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 15.20 % as on 31st December 2024. Federal Bank has Representative Offices in Dubai and Abu Dhabi that serve as a nerve center for Non-Resident Indian customers in the UAE. The Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance TecCity (GIFT City). Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

About NPCI

National Payments Corporation of India (NPCI) is the central body responsible for overseeing retail payments and settlement systems in India. It is established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). The Company is focused on bringing innovations in the retail payment systems by using technology for achieving greater efficiency in operations and widening the reach of payment systems. NPCI is committed to harnessing the transformative potential of deep tech, creating an ecosystem that fosters collaboration to work on breakthrough technologies. Underlining its commitment to service, NPCI has been incorporated as a “Not for Profit” Company to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

NPCI has made a profound impact on India's retail payment landscape, focusing on creating robust, efficient, and inclusive payment and settlement solutions. NPCI has been instrumental in introducing a range of products that have revolutionised retail payment systems. These include Unified Payments Interface (UPI), RuPay, National Automated Clearing House (NACH), Immediate Payment Service (IMPS), National Electronic Toll Collection (NETC), Aadhaar Enabled Payment System (AePS), e-RUPI and more. Each of these products has contributed significantly to enhance the efficiency and accessibility of payment systems in India, ultimately propelling financial inclusion.

NPCI has played a fundamental role in establishing the foundation for India’s rapidly growing digital payments ecosystem, projecting the country onto the global stage.

NPCI has three wholly owned subsidiaries – NPCI International Payments Limited (NIPL) and NPCI Bharat BillPay Limited (NBBL) and NPCI BHIM Services Limited (NBSL), established in pursuance of NPCI Board & RBI approval.

For more information visit: https://www.npci.org.in