Prepaid MasterCard and Visa Card issuer Green Dot Corp. reportedly had planned to buy the Wal-Mart branded prepaid debit card business from GE Capital, the US Federal Reserve said in a statement. GE Capital is the financial services unit of American conglomerate General Electric Co.

In a report by Reuters, it said the US Federal Reserve had approved the deal on Friday. The transaction will include USD276 million in total deposits, more than doubling the total deposits at Green Dot's bank unit located in Utah.

Reuters said Green Dot intended to offer more features to Wal-Mart Stores Inc. cardholders. This will include automated bills payment and check-writing services.

The Wall Street Journal (WSJ) previously reported GE's proposed sale of its retail lending arm. The exit was said to be the conglomerate's most aggressive move yet to shrink the size of its financing arm. GE's retail lending business generates half of its profit, WSJ said.