FD-Backed Credit Cards Rise As No-Score Access Expands

FD-backed credit cards are picking up in India as banks chase new-to-credit customers. RuPay on UPI is helping these cards feel more “daily-use”.

A large set of Indians still finds it tough to get an unsecured credit card because there is no credit history, limited bureau file, or inconsistent income proofs. Banks are now marketing secured, FD-backed cards as a cleaner entry route. 

The customer opens an FD, the issuer places a lien on it, and a credit limit is issued against that deposit. With RuPay cards getting wider UPI acceptance, issuers are pushing these products beyond “starter credit” and into routine QR payments, bill payments and online spends. 

The latest launches show a sharper focus on cashback, low minimum deposits and digital onboarding.

Credit Access Gap For First-Time Users

India’s credit card market keeps expanding, but approvals for first-time borrowers remain patchy. One reason is straightforward underwriting. A bank has limited data to price risk when a customer has no bureau record. 
 

FD-backed cards reduce that risk because the deposit serves as collateral, so issuers can onboard customers who otherwise get rejected. In many cases, this also means faster approvals and fewer eligibility hurdles. 

Paisabazaar’s explainer (updated February 6, 2026) notes that low or no credit score and lack of income proof do not usually block eligibility for a card issued against an FD, since the FD acts as security. 

IDFC FIRST Pushes A RuPay Secured Card With Cashback

The newest headline move is IDFC FIRST Bank’s secured RuPay credit card, positioned for first-time and credit-constrained users. The Times of India reported the launch on February 17, 2026, highlighting that the card is FD-backed and pitched with simplified access plus cashback benefits. 

LoansJagat’s coverage, published February 23, 2026, added the product framing for “UPI-heavy” users and reiterated the ₹10,000 entry FD and “up to 5% cashback” positioning. 

LivemintMoney, also dated February 17, 2026, reported key pricing and waiver details: ₹1,000 joining fee and ₹1,000 annual fee, with the joining fee waived till March 31, 2026, and annual fee waiver on spends of ₹2 lakh or more. 

It also quoted Shirish Bhandari, Head, Credit Cards, FASTag & Loyalty at IDFC FIRST Bank, describing it as designed for digitally savvy first-time users with “rewarding digital payments” from day one.

LoansJagat flagged that the real payoff depends on caps, exclusions, and how the user spends across eligible categories. 

What Happened Earlier Banks And Fintechs Lower Limits To Onboard More Users?

This did not start in 2026. ETtech reported on September 8, 2025 that banks and fintechs were pushing FD-tied cards and sharply reducing limits, in some cases as low as ₹90, versus the usual entry range of ₹25,000 to ₹50,000. The same report said that out of 1 to 1.1 million credit cards issued monthly, nearly 100,000 could be deposit-backed cards.
 

Suryoday Small Finance Bank’s press release dated September 2, 2025 positioned its secured RuPay cards for first-time users and said customers could start with an FD of ₹1,000 for the Platinum variant and ₹1,11,500 for the Select variant. It also cited card market growth, stating that as of May 2025 there were 111 million credit cards in circulation, up from about 108 million in January 2025.

Angel One’s update on September 4, 2025 also covered Suryoday’s FD-backed card launch and highlighted the “RuPay + UPI” angle and cashback positioning. 

Another recent secured-card push came via Kotak Mahindra Bank’s partnership with super.money. The Economic Times Wealth reported on November 2025 that the Kotak811 super.money secured card can be issued against a minimum ₹5,000 FD, with a credit limit equal to 90% of FD value, and is positioned as lifetime-free.

This is how the secured-card playbook is shaping up across issuers:
 

What Stakeholders Are Saying?

IDFC FIRST Bank’s Shirish Bhandari said the Hello Cashback card is built for digitally savvy customers and makes rewarding digital payments accessible from day one for first-time users. 

Suryoday SFB’s CBO Gaurav Pawra framed FD-backed cards as a way to widen access while encouraging responsible credit habits.

On the risk side, police statements in Kolkata pointed to investigation into call trails and fraudulent links in a rewards-related credit card scam report. 

Conclusion

FD-backed credit cards are becoming a mainstream on-ramp for Indians with no credit score, with cashback and UPI usage being the biggest hooks. The deal works best when fees, caps, and scam risks are checked before signing up.