Consumer credit platform Novio has partnered with Indian Overseas Bank to launch a co-branded IOB credit card on the RuPay network. The card was unveiled on 16 September 2026 at the Global Fintech Fest in Mumbai in two variants, RuPay Select and RuPay Platinum. It is backed by a fixed deposit and is designed for UPI active users and first time borrowers with limited credit history.
What Is the Novio IOB Co-Branded RuPay Credit Card?
The Novio IOB credit card is a co-branded RuPay credit card jointly issued by Indian Overseas Bank as the card issuer and Novio as the co-branding partner. Novio is a consumer credit platform operated by Credilio Financial Technologies Pvt Ltd, a Mumbai based fintech company. In this structure, Indian Overseas Bank provides the banking infrastructure, credit account and settlement, while Novio provides the digital application journey, UPI focused user experience and rewards platform.
A co-branded credit card means the card carries the branding of both partners, but it is legally issued by the bank. Under the Reserve Bank of India framework for co-branded cards, the role of the co-branding partner is limited to marketing and distribution, and the card issuer remains responsible for credit appraisal, customer data protection and delivery of promised offers. The Novio IOB card was unveiled on 16 September 2026 at the Global Fintech Fest in Mumbai by Joydeep Dutta Roy, Executive Director of Indian Overseas Bank, and Aditya Gupta, Founder and Chief Executive Officer of Novio.
The card is offered in two variants, RuPay Select and RuPay Platinum. Both variants work on the RuPay network and can be linked to UPI applications for merchant payments. The stated target group is UPI active customers and new to credit users, including young earners and customers in smaller cities who use UPI daily but do not hold a conventional credit card.
How Does the FD-Backed Novio Credit Card Work?
What is Novio credit card and how does it work?
The Novio credit card is a fixed deposit backed secured RuPay credit card that gives guaranteed approval against a small fixed deposit, starting from about ₹2,000, without income proof or credit score. The customer opens the deposit through the Novio app, receives an instant virtual card linked to UPI, and builds a bureau record through regular repayment.
A secured credit card is a card issued against a fixed deposit held as security with the issuing bank. The bank marks a lien on the deposit, which means the customer cannot withdraw the deposit while the card is active. The credit limit is fixed as a proportion of the deposit amount, commonly around 90 percent in such products, though the exact proportion for the IOB Novio card is governed by the card terms issued by Indian Overseas Bank. If dues are not paid, the bank can recover them from the linked deposit, so the risk for the bank is low. This is why customers with limited or no formal credit history can access the card.
The deposit continues to earn interest during the card tenure. Novio indicates interest of up to 7 percent per annum on the underlying deposit, subject to the rate offered by the partner bank at the time of booking. Responsible use and full repayment before the due date helps the customer build a credit bureau profile, which is the repayment record maintained by credit information companies such as CIBIL. Over time, a clean record can improve eligibility for unsecured cards, personal loans and higher limits.
How to apply online and activate the card
The IOB Novio card uses instant digital onboarding through the Novio app. The customer completes paperless identity verification, books the fixed deposit through UPI, and receives a virtual RuPay card for immediate use. A physical card is dispatched after approval. The flow below summarises the standard journey for such FD backed cards.
| Stage | What the customer does |
|---|---|
| Application | Download the Novio app, select the IOB Novio variant and complete identity verification |
| Fixed deposit booking | Open a fixed deposit with Indian Overseas Bank through the app using UPI |
| Card issuance | Receive an instant virtual RuPay card linked to the credit limit |
| UPI linkage and activation | Link the card in a UPI app, set the UPI PIN for the credit account and start merchant payments |
| Servicing | Track spends, pay the monthly bill and manage the deposit through the Novio app and the IOB credit card portal |
Novio Card Benefits and RuPay Features
The IOB Novio card is positioned as a lifetime free card for its base offer, which means no joining fee or annual fee is charged on the core variant under the stated terms. Customers should still check the Most Important Terms and Conditions for charges that apply to all credit cards, such as interest on revolving balances, late payment fees, cash withdrawal fees and goods and services tax on fees. Interest free period, billing date and billing cycle are fixed by Indian Overseas Bank and are shown in the monthly statement.
Rewards are powered by Novio and are earned on UPI transactions and other everyday spending. Reported benefits include rewards on grocery, food delivery and shopping spends, cashback offers at merchants such as Amazon, Swiggy and Zepto, and monthly movie ticket benefits through BookMyShow. Airport lounge access varies by variant, with RuPay Select generally offering higher lounge entitlements than RuPay Platinum. Exact reward rates, caps, exclusions for rent, wallet loading, fuel and gaming, and redemption rules are set in the product terms and can change, so the app and statement remain the final reference.
Both variants carry standard RuPay benefits in addition to Novio offers. RuPay is the domestic card payment network developed by the National Payments Corporation of India (NPCI), which was incorporated in 2008 as the umbrella organisation for retail payments in India. RuPay cards support contactless payments, e commerce transactions and value added offers published by NPCI for RuPay Select and Platinum tiers. Because the card is on RuPay, it can be linked to UPI for payments at neighbourhood stores, quick commerce apps and other merchants that accept UPI QR codes.
Indian Overseas Bank and Credilio: Issuer Profile
Indian Overseas Bank (IOB) is a public sector bank headquartered in Chennai. It was founded on 10 February 1937 by M. Ct. M. Chidambaram Chettyar with a focus on foreign exchange and overseas banking, and it began operations simultaneously at Karaikudi, Chennai and Rangoon in present day Myanmar. IOB was among the 14 major banks nationalised in 1969. The bank now has a pan India network of more than 3,300 branches, along with thousands of automated teller machines and business correspondents, and overseas branches in Singapore, Hong Kong, Thailand and Sri Lanka.
IOB already issues RuPay credit cards in Classic, Platinum and Select tiers, along with Visa variants. Its standard unsecured cards generally require a minimum monthly income and a satisfactory bureau score, often around 700 or above. The Novio partnership adds an FD backed entry route that does not depend on those income and score thresholds, while the credit account itself remains with IOB.
Credilio Financial Technologies Pvt Ltd is the operator of Novio and acts as a distributor of credit cards and personal loans in partnership with banks and non banking finance companies. Novio has earlier worked with banking partners such as SBM Bank India and DCB Bank for similar FD backed RuPay products. After a ₹100 crore Series A funding round led by Cornerstone Ventures, the company has stated a plan to issue 50 lakh credit cards over three years, with a focus on tier 2 to tier 5 cities. The IOB tie up is part of that expansion strategy.
Is Novio RBI approved and is the Novio app safe?
Novio as an app is a technology and distribution platform, while the deposit and credit account are held with Indian Overseas Bank, which is a regulated scheduled commercial bank. Deposits with the bank are covered under the standard bank regulatory framework, including deposit insurance through the Deposit Insurance and Credit Guarantee Corporation up to the statutory limit. Customers should download the app only from official app stores, verify that the fixed deposit receipt and card statement show Indian Overseas Bank as the issuer, and use official IOB customer care and portal channels for payments and grievances.
What Is RuPay and How Does UPI Linkage Work?
Unified Payments Interface (UPI) is the instant payment system operated by NPCI that allows users to pay merchants by scanning a quick response code. In June 2022, the Reserve Bank of India allowed RuPay credit cards to be linked to UPI apps. This allows a customer to select the credit card as the payment source in the UPI app, enter the UPI PIN for the credit account, and pay a merchant from the credit limit instead of a savings account. The transaction then appears in the monthly credit card bill with the normal interest free period of up to 45 to 50 days, depending on the billing cycle.
Only RuPay credit cards can use this facility (as of September 2026). Visa and Mastercard credit cards cannot be linked to standard UPI for credit payments. Person to person transfers to friends, cash withdrawals and certain categories such as rent and wallet loading are either blocked or excluded from rewards under issuer terms. For merchant payments above ₹2,000, the merchant pays a merchant discount rate similar to a card swipe, which is why some merchants may disable credit on UPI. Small merchant payments up to ₹2,000 generally carry no such charge.
For UPI first users, the linkage brings three practical effects in one place. It extends credit acceptance to small kirana stores and service providers who have only a UPI QR code and no point of sale terminal. It converts many small UPI payments into a single monthly statement, which makes tracking easier. And it allows everyday UPI spends to earn rewards and build a repayment record, provided the full amount due is paid by the due date to avoid interest of around 36 to 42 percent per annum typical on revolving credit.
Why the Partnership Matters for Credit Access
India has only about 40 million unique credit card holders against an estimated potential base of around 300 million users, so a large share of digitally active customers remains outside formal credit. The main barrier is the entry rule for unsecured cards, which asks for salary slips and an established bureau score. An FD backed card removes that barrier because the deposit itself acts as collateral. The customer gets controlled access to credit, and the bank carries limited risk.
The partnership reflects a wider shift in Indian banking in which public sector banks provide the licence, balance sheet and settlement network, while fintech firms provide digital sourcing, app based servicing and targeted rewards. For Indian Overseas Bank, the tie up extends its credit card portfolio to younger and new to credit segments without expanding branch based underwriting. For Novio, a partnership with a large public sector bank adds scale and trust to its plan to reach smaller cities.
The choice of the RuPay and UPI route also supports domestic payment networks. Every UPI payment through the card is processed on NPCI rails, which keeps transaction data and processing within the domestic system and widens acceptance for RuPay credit at small merchants. If repayment discipline is maintained, such products can act as a first step toward larger formal loans. If balances are revolved or cash is withdrawn, high interest and fees can quickly outweigh the reward value, so full monthly repayment remains central to safe use.
Key Takeaways
- Novio, operated by Credilio Financial Technologies Pvt Ltd, partnered with Indian Overseas Bank to launch a co-branded RuPay credit card unveiled on 16 September 2026 at the Global Fintech Fest.
- The card is offered in RuPay Select and RuPay Platinum variants and is targeted at UPI active and new to credit users.
- It is an FD-backed secured card starting from about ₹2,000, with instant digital onboarding and no income proof requirement.
- RuPay is operated by NPCI (incorporated in 2008), and only RuPay credit cards can be linked to UPI for merchant payments (as of September 2026).
- Indian Overseas Bank, founded on 10 February 1937 and headquartered in Chennai, is the card issuer, while Novio handles marketing, onboarding and rewards under RBI co-branding norms.
