New Delhi: The Reserve Bank of India (RBI) has issued new guidelines directing banks to provide customers with the option to select from multiple card networks. The directive mandates card issuers to allow eligible customers to choose their preferred card network at the time of card issuance.
Under the new guidelines, card issuers are prohibited from entering into agreements with card networks that restrict customers from accessing services offered by other networks. This initiative comes in response to the RBI’s observation that existing arrangements were limiting choices for consumers.
Furthermore, the directive extends the choice to existing cardholders, enabling them to exercise this option during their next card renewal. The RBI aims to empower customers by granting them more control over the selection and usage of credit cards through these directives.
According to the RBI, card issuers and networks must comply with the new requirements in existing agreements, at the time of amendment or renewal, as well as in fresh agreements. The authorised card networks include American Express Banking Corp, Diners Club International, MasterCard Asia/Pacific, National Payments Corporation of India–Rupay, and Visa Worldwide.
However, the directives do not apply to credit card issuers with fewer than 10 lakh active cards. Additionally, issuers that issue credit cards on their own authorised card network are exempt from the circular’s applicability.
It is noteworthy that these rules were originally scheduled to be enforced since October 2023. However, the RBI extended the deadline by six months due to non-compliance by some players. This directive is now effective since March 6.
