Federal Bank’s New MSME Card: ‘Fed StarBiz’ Linked to OD/CC

April 5, 2025 | EaseMoney News Desk: Federal Bank has rolled out a new credit card designed just for small and medium-sized businesses (MSMEs). The card name is: “Fed StarBiz Credit Card”. It launched on April 03, 2025.

The major focus of launching this card is helping business owners manage their day-to-day transactions more smoothly by linking directly to their existing Overdraft (OD) or Cash Credit (CC) accounts with Federal Bank. You don’t get a separate credit line like with a typical credit card.

The card is available in RuPay and Visa variants, thanks to a collaboration with NPCI and Visa, two of the biggest names in the payment world.

What are the key Features of the Fed StarBiz Credit Card?

1. Direct Account Integration: The card links seamlessly to existing Overdraft (OD) or Cash Credit (CC) accounts with limits up to ₹50 lakh, providing suitable financial management.​
2. Validity: The card is valid for 5 years, contingent upon the status of the underlined Overdraft and Cash Credit account status.
3. Transaction Limits: You can use the card to spend up to ₹3 lakh per day or whatever limit is left in your OD/CC account.
4. Security Measures: It is equipped with advanced tokenization, VISA or RuPay big payment network safety, and encryption technologies to safeguard transactions.
5. No separate bill: There is no monthly credit card bill — just one account statement showing everything.
6. Other benefits:
   • RuPay or Visa cards are accepted almost everywhere in India.
   • Tap & Pay enabled for quick payments.
   • Works for in-store, POS, e-commerce, online, and contactless transactions.
   • UPI-linked Transactions payment to any merchants.

What the Bank and Partners Said:

The CEO and Federal Bank’s Executive Director, Shalini Warrier, shared her own vision at the launch of the card. ‘

“SME customers play a very critical role in India’s growth. In continuation of our journey to support them, we’re excited to introduce Fed StarBiz — a business credit card that offers financial flexibility and security.”

Shalini Warrier

Watch the Launch Video

On April 03, 2025, Federal Bank shared a video on their official Facebook page explaining the card and its benefits and the application process:

You can watch it here: https://www.facebook.com/share/v/15bvqZfxQX

Charges

Fees are competitively priced to remain accessible to small businesses:

• Issuance Fee: ₹275 + GST
• Annual Fee: ₹275 + GST
• Reissuance Fee: ₹225 + GST (if needed)

Note: 18% GST is applicable on all charges.

All repayments are to be made into the OD/CC account as per standard processes. No separate credit card bills will be generated, largely reducing financial clutter for business owners.

What are the Eligibility Criteria

To be eligible for the Fed StarBiz card Business *RuPay or *Visa, applicants must need:

1. The cardholder must hold a Federal Bank OD or CC account with a limit not exceeding ₹50 lakh to become eligible. (Anyone)
2. The applicant must be an Indian resident operating under sole proprietorship or individual ownership.
3. The applicant must be engaged in manufacturing or service activities as defined under the MSMED Act, 2006.

How to Apply for the Card

Applying for the Fed StarBiz card is simple and convenient:

• Visit Your Home Federal Bank Branch: Just visit your branch and ask to apply for the Fed StarBiz Credit Card and fill out a quick application form. Mention your OD or CC account number and your customer ID, and submit the required KYC and business documents. (aadhaar or PAN may be required*)
• Through Your Relationship Manager: Existing customers can contact their Business Banking Relationship Manager (BRN).
• Online Option (Coming Soon): As per the Federal Bank website, they are reportedly working on enabling digital applications via its Instaloans and corporate banking portals.

Recent Credit Card News:

1. Significant Changes to Credit Cards: SBI, HDFC, IDFC, Axis Bank Revise Benefits from April 2025
2. CSB Bank & Jupiter Launch the EDGE RuPay Credit Card: 10% Cashback on Amazon, Flipkart, & More!
3. Latest Stats Reveal Massive Surge in RuPay Credit Card UPI Transactions in 2025

Stay tuned with easemoney — the bank hinted that more business-focused tools are coming later this year. Follow us at Google News and Flipboard.