RBI issues new credit card rules to enhance user experience

Mumbai: In a move to improve customer experience, the Reserve Bank of India has issued guidelines for card issuers directing them to offer choice of networks to users. Previously, banks issued cards based on their preference of network. The guidelines will apply to credit card issuers with over 10 lakh active cards. Banks and issuers that run their own network, for example, American Express, are exempt from the new rules.

The new guidelines will offer the following important advantages to users:

• Indian credit card holders will have the freedom to choose their preferred card network from Mastercard, Rupay, or Visa.
• Eligible users will be provided with the option by their card issuer to choose any one network from the three.
• Customers will be able to access this option either at the time of applying for a new credit card or while renewing an existing one.
• The choice of networks will allow customers to avail exclusive offers conveniently and provide wider acceptance for their cards.

Several banks including Yes Bank and Bank of Baroda have already implemented these guidelines. Through this customer-centric initiative, the RBI aims to drive competition among card networks on fees and other benefits, thereby liberalizing the credit card industry.

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