In a move that will create a new business opportunity for India’s largest insurer, the Life Insurance Corporation of India’s card division has received permission to issue pre-paid cards into which policy benefits will be credited.
The RBI on Thursday said that banks may issue pre-paid instruments to LIC for credit of either one-time or periodic payments by the Corporation to its customers. Speaking to ET, SC Singh, chief executive, LIC Cards said that the Corporation has been eyeing pre-paid cards as a business opportunity. Besides saving the Corporation remittance cost, it would also enable it to acquire card customers. “There may be people who are more comfortable with using a pre-paid instrument. This will also aid financial inclusion as it will allow payment cards to be issued to those without bank accounts and who are not ‘cardable’ at present,” said Mr Singh.
LIC entered the credit card business in March 2009 by floating a wholly-owned subsidiary — LIC Card Services . The ‘LIC Cards’ are managed by Corporation Bank and the Visa is the payment service provider.
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