New Delhi, Oct. 13 -- SBI Cards and Payment Services is seen as a potential beneficiary of the Reserve Bank of India's (RBI) revised risk weight-based capital adequacy norms. A draft circular in this regard was released on Tuesday. In reaction, SBI Cards rose intraday on Wednesday. The proposed rules aim to reduce capital requirements for all credit card issuers.

Currently, credit card outstanding dues worth Rs.100 are treated as Rs.125 by applying a uniform risk weight of 125%. Then, the Capital to Risk-Weighted Assets Ratio (CRAR) rate of 15% is applied to Rs.125 to arrive at a capital requirement of Rs.18.75. There is no bifurcation of Rs.100 into dues from transactors and revolvers. Transactors are credit card users who use the card ...