RBI Circular Gives More Power to Debit and Credit Card Users: The Reserve Bank of India (RBI) stated in a circular on Wednesday that companies issuing cards should not make any agreement or arrangement with card networks that prevent customers from using services from other networks.
If you are a debit or credit card customer, you will now be able to choose your preferred network. Banks will be required to provide this facility. The RBI stated in the order that banks issuing credit/debit cards will offer customers the option to choose any network when issuing cards. Banks cannot compel customers to choose one network. This rule must be implemented within six months.
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The RBI stated in a circular on Wednesday that companies issuing cards should not make any agreement or arrangement with card networks that prevent customers from using services from other networks. Customers who currently have cards will need to be given the option to choose a network when renewing their cards. The RBI said that arrangements between card networks and card issuers regarding giving customers options are not correct.
By this decision, customers will have more options when taking a new card or during renewal. This will improve the consumer experience.
Networks with fewer than 1 million cards exempt from the rule
This directive will not apply to credit card issuers with fewer than 1 million active cards. In addition, institutions issuing credit cards on their own authorized network are exempt from these guidelines. Networks such as Visa, Mastercard, American Express Banking Corp, Diners Club International, Mastercard, National Payments Corporation of India’s RuPay, and Visa Worldwide currently offer card services. Card issuers and networks will need to comply with the RBI’s new guidelines when renewing and entering into new agreements and arrangements.
