RBI Empowers Customers with Card Network Choice

6 Mar 2024 , 10:57 AM

On Wednesday, the Reserve Bank of India gave card issuers instructions to allow customers to select from a variety of card networks. Banks and non-banking entities that provide credit cards will now need to give their clients the choice of selecting from a number of different card networks. At the moment of issuance, this choice would be available.

On the other hand, current cardholders may have this option when renewing. Additionally, card issuers have been instructed not to sign any agreements with card networks that would prevent them from using third-party services. As per the RBI, this directive will take effect on September 6, 2024.

The RBI has also provided a list of approved card networks for this purpose. Among them are Visa Worldwide Pte. Ltd., MasterCard Asia/Pacific Pte., Diners Club International Ltd., American Express Banking Corp., and National Payments Corp.–Rupay. 

The action was taken when the RBI noticed certain agreements between card issuers and networks. These setups did not support the accessibility of choice

However, credit card issuers with fewer than 10 lakh active cards will not be subject to the regulations. Additionally, it does not include card issuers who independently issue

The RBI made a draft circular available for comment from interested parties in July 2023. In addition, it required both banks and non-banks to provide their consumers the choice of several networks and to issue cards on different card networks. 

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