India Post Daily

RBI requests that banks provide consumers the option to choose cards from many networks

<p>In a step that will assist card users, Reserve Bank has instructed banks to provide its qualified clients the choice to choose from a number of card networks when credit or debit cards are issued.</p>
<p><img decoding=”async” class=”alignnone wp-image-480018″ src=”×422.jpg” alt=” rbi requests that banks provide consumers the option to choose cards from many net” width=”994″ height=”560″ title=”RBI requests that banks provide consumers the option to choose cards from many networks 9″ srcset=”×422.jpg 750w,×576.jpg 1024w,×432.jpg 768w,×220.jpg 390w, 1200w” sizes=”(max-width: 994px) 100vw, 994px” /></p>
<p>Additionally, the central bank requested that credit card issuers refrain from entering into any agreements or arrangements with card networks that would prevent users from using the services of other networks.</p>
<p>“On a review, it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers,” the Reserve Bank said in a circular.</p>
<p>It said that this option could be made available to current cards when their next renewal comes up.</p>
<p>“The RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs… Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks,” it stated.</p>
<p>Authorized card networks were specified in the circular, including Rupay and Visa Worldwide Pte Limited from National Payments Corporation of India, American Express Banking Corp., Diners Club International Ltd., and MasterCard Asia/Pacific Pte Ltd.</p>
<p>It said that when new agreements are signed and current agreements are amended or renewed, card issuers and networks must make sure that the RBI’s requirements are followed.</p>
<p>It did state, however, that credit card issuers with less than 10 lakh active cards would not be subject to the directive.</p>
<p>“Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular,” it said.</p>
<p>It also said that the instructions would take effect six months from the date of this circular and would provide eligible consumers a choice of numerous card networks.</p>

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