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Last Updated on: 19/08/2023


Category Description


  • Existing/New MSME units (Individuals/ Proprietorship Firm/ Partnership/ Private Limited Company engaged in trading activities i. e., Retail & Wholesale traders classified as MSME registered on Udyam Registration Portal (URP).
  • URP Registration is mandatory/ GST registration (if applicable).
  • New & existing MSME units enjoying Fund Based Working Capital Limits up to Rs. 50.00 Lacs.

Nature of Facility

  • Merchant Credit Card limit will be sanctioned as a sublimit of Working Capital limit (Cash Credit) in the form of cash credit.
  • Merchant Credit Card shall be issued as Credit Card linked to Cash Credit/ Overdraft (Working Capital) facility sanctioned for the business purposes in conformity with RBI Master Direction on Credit Card & Debit Card (Issuance & Conduct Directions) dated April 21,2022.


Working Capital requirement and for promoting digital payment among GST and/ or URP registered MSME units.

Quantum of Loan

10% of Fund Based WC limit or Rs.5.00 Lacs whichever is lower.

Rate of Interest

  • ROI as applicable for the WC limit sanctioned.
  • Credit Card charges as per circular in force will be levied.


The Merchant Credit Card account will be renewed every year along with Working Capital limits.

The Interest charged in Merchant Credit Card account to be serviced as and when debited.

The Card will be sub limit of main Cash Credit Limit. No restriction has been stipulated for replenishment of by way of repayment by the borrower or transfer /adjustment of card outstanding from the main Cash Credit Limit.

Other Conditions

  • While issuing Merchant Credit Card the drawing power of the parent Working Capital to be reduced to the extent of the Merchant Credit Card limit. Branches to ensure utmost caution in this regard.
  • At any point of time, total drawing power (Parent Working Capital + Merchant Credit Card) should not exceed the parent Working Capital limit.
  • IOB MCC limit will be within the assessed bank finance based on which Cash Credit/ Overdraft limit has been sanctioned.
  • The WC limit is subject to annual renewal and as the outstanding in the card account is getting liquidated from Cash Credit, turnover in card account should not be considered for accessing WC limit.
  • A separate Cash Credit account as sublimit of the sanctioned Working Capital limit has to be opened and the limit of the card will be sanctioned as sublimit.
  • Undertaking to be obtained from borrower for utilisation of limit for business purpose only.
  • Transactions in IOB Merchant Credit Card limit will be allowed within the drawing power available.
  • Cash withdrawal through Merchant Credit Card will be enabled in coming month.
  • Per day limit for POS and e-commerce: Rs. 1,00,000/-
  • Manual CBS debit transaction not permitted, and cheque will not be issued.
  • Card should not be useds in jewellery shop and to fund de-mat account transactions. System should disable the same.
  • No international transaction will be allowed.
  • In case of Partnerships/ Limited Companies, the Card shall be operated by one of the Partners/ Directors, authorized by the Firm/Company. Only one card will be issued per Firm/Company.