AU Small Finance Bank has made a significant move in the digital banking space with the launch of its new AU KOSMO Credit Card. This innovative product, developed in partnership with Kiwi, a Credit on UPI platform, brings the convenience of UPI payments to credit card users.

Key Features of AU KOSMO Credit Card

The AU KOSMO Credit Card, built on the RuPay network, offers a unique proposition to customers:

• UPI Integration: Users can make credit payments via UPI at both online and offline merchants without the need for a physical card.
• Rewards on UPI Payments: The card offers rewards for transactions made through UPI, encouraging digital payments.
• Fuel Surcharge Waiver: Cardholders enjoy a 1% fuel surcharge waiver, providing savings on fuel purchases.
• No Annual or Renewal Fees: The card comes with no annual or renewal fees, making it an attractive option for cost-conscious consumers.

Target Audience and Onboarding

AU Small Finance Bank is positioning the AU KOSMO Credit Card to appeal to:

• First-time credit users
• Young professionals
• Tech-savvy consumers

The bank has implemented a digital onboarding process, aligning with the preferences of its target demographic and streamlining the user experience.

Market Context

The launch of the AU KOSMO Credit Card comes at a time of significant growth in the UPI and RuPay ecosystems:

• UPI P2M (Person to Merchant) payments reached ₹7.20 lakh crore in August, marking a 26% year-over-year increase.
• RuPay's credit card market share has grown to nearly 12%, indicating increasing adoption of the domestic payment network.

AU Small Finance Bank's Market Position

As of June 30, AU Small Finance Bank's financial position and reach include:

• Over 2,500 banking touchpoints across 21 states and four union territories
• Total deposits of ₹1.27 lakh crore
• Loan portfolio of ₹1.17 lakh crore

Strategic Implications

The introduction of the AU KOSMO Credit Card aligns with AU Small Finance Bank's broader strategy of financial inclusion. By combining credit card functionality with the widely-used UPI platform, the bank aims to expand its services across urban, semi-urban, and rural markets.

This move could potentially increase the bank's customer base, particularly among younger and more tech-savvy demographics, while also contributing to the growth of digital payments in India. The absence of physical cards may also lead to reduced operational costs for the bank in terms of card production and distribution.

As the digital payments landscape in India continues to evolve, products like the AU KOSMO Credit Card represent an important convergence of traditional credit services with modern payment technologies, potentially setting a trend for other banks to follow.

AU Small Finance Bank announced the unexpected demise of its Chief Financial Officer, Vimal Jain, on September 10, 2025. The bank disclosed this information in a regulatory filing to the stock exchanges.

Sudden Loss of a Key Executive

Mr. Jain, who had been with AU Small Finance Bank since 2010, succumbed to a cardiac arrest on the morning of September 10. His passing marks the end of a 15-year tenure with the bank, during which he played a crucial leadership role in the Finance and Accounts function.

A Pillar of Strength

In its statement, AU Small Finance Bank described Vimal Jain as a "pillar of strength" for the organization. The bank acknowledged his significant contributions, stating that it had "immensely benefitted from his vision and leadership during his tenure."

Career and Impact

Fondly referred to as "Vimal Ji" within the organization, Jain was recognized for his perseverance, keen learning aptitude, and exemplary leadership capabilities. These qualities led to his emergence as a credible and respected banker over the years.

Legacy and Succession

The bank emphasized that the strong team Jain created in the Finance and Accounts department will carry forward his vision and legacy. This commitment is seen as a tribute to his impactful leadership.

Next Steps

AU Small Finance Bank has initiated necessary steps for interim succession. The bank has committed to updating regulators on further developments regarding the CFO position, in compliance with applicable RBI and SEBI regulations.

The bank's management expressed deep sympathy and condolences to Mr. Jain's family, acknowledging that his sudden and unexpected passing will be an irreparable loss to the institution.