Bank cannot deny to choose card network on credit card

[kochiro]

Just remember this might nullify reward points, reset milestone of annual fees and cause issues with lounges.

 

[sidp]

I’ll ask My Airtel, APay Cards on Amex Networks
Simply click on Rupay(5-10 points for every ₹100) even One Card on Rupay

That's never going to happen. If rbi directs this now, what's next? Forcing issuers to allow to redeem cv points on spicejet?

What it aims to do is allow to switch between available networks. Neu Infinity comes in rupay and visa. You can switch between them. You can't demand neu infinity in amex or diners.

 

[kochiro]

That's never going to happen. If rbi directs this now, what's next? Forcing issuers to allow to redeem cv points on spicejet?

What it aims to do is allow to switch between available networks. Neu Infinity comes in rupay and visa. You can switch between them. You can't demand neu infinity in amex or diners.

So basically this affects SBI and Axis as others are okay with you choosing any network anytime.

 

[sidp]

So basically this affects SBI and Axis as others are okay with you choosing any network anytime.

Indusind and idfc too.

 

[samm255]

It will only work if card is available on other network. I am thinking to replace few VISA cards into MC.

 

[xfactcc]

Queries and analysis:

RBI had earlier released the "Draft Circular - Arrangements with Card Networks for issue of Debit, Credit and Prepaid Cards" on July 05, 2023 which states: [PDF attached]

3. In exercise of the powers conferred under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), the RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs as under:

1. Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
2. Card issuers shall issue cards across more than one card network.
3. Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time.

Even though it is a 'draft circular' it goes on to say:

5. The directions at para 3 (b) and (c) above shall be effective from October 01, 2023.

So, that is means as of now it is an enforced circular for the relevant portions.

Then this final circular comes dated March 6, 2024 and supersedes the section of the aforementioned existing circular 3.b. with its own 3.b. which states:

b) Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option may be provided at the time of the next renewal.

So, the provision has been revised, potentially favoring card issuers. As per it, for existing customers card network change is not possible anymore at ANY subsequent time but at the time of next renewal only.
This the new circular also says this:

7. The directions at para 3(b) above shall be effective six months from the date of this circular.

Meaning it will be effective from 6 September, 2024.

Does it mean, as of now the previous circular is in effect until 6 September? Your commentary is welcome.

 

[VibhavBilgoji]

since ICICI and IndusInd are some of the banks that actually offer cards on AMEX, so can we, uk, ask for Amazon pay ICICI card on AMEX, or atleast Platinum Chip Card, or Legend card? the circular says the bank has to have a existing relations with that card network, so this should be possible right?

 

[asahi]

If this is seriously implemented without any checks so many cards will be useless especially reward points based ones, example: Apay on Rupay with all current benefits, that means 1% cashback on upi, it will make coral cards useless, or rbl cards useless. I think changing card network may attract Fees + changes in annual fees, like Apay is LTF CARD, but they may not give Apay Amex as LTF. Also if sbi issues simply click card on rupay(5-10 points per 100) it makes most sbi cards useless.

 

[TechnoFino]

@TechnoFino



Since you are being referenced in the article, please do give us hope, will HDFC start issuing DCB on Visa / mastercard or they'll keep this variant specific to Diners Club only?

Nope!
Hdfc is issuing dcb in diners club only... so you can't get visa black

 

[TechnoFino]

New notification which enables you to chose your own card network provider.

Credit card users can now choose between Visa, Mastercard, RuPay and Amex. Here’s what you need to know

Credit card users will now have the freedom to choose between card networks. Until now, your bank decided the networks the card you were issued was based on. The RBI's latest directive gives more choice to card customers

www.moneycontrol.com

Will this let Diners Club Black holders chose Visa / Mastercard? This would solve a lot of problems.

No!
You can't get visa hdfc black credit card... lol