RBI’s Latest Circular On Card Network Change

[g_pa_1]

1. 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.

For the purpose of these directions, the following definitions are used:

i) Authorised card networks: American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/ Pacific Pte. Ltd., National Payments Corporation of India-Rupay, and Visa Worldwide Pte. Limited.

 

[Vineet Kumar]

**📢 Important Announcement from RBI: New Guidelines for Credit Card Issuance and Usage 📢**

These guidelines aim to ensure transparency, choice, and convenience for credit card users across the country.

Here's a summary of the key points outlined in the recent directive:

1. Choice of Card Networks: The RBI has emphasized the importance of providing customers with options to choose from multiple card networks at the time of card issuance. This ensures that customers have the flexibility to select a network that best suits their needs.

2. Restrictions on Arrangements: Card issuers are prohibited from entering into arrangements or agreements with card networks that restrict them from availing the services of other networks. This is aimed at promoting fair competition and enhancing customer choice.

3. Eligibility for Multiple Networks: Card issuers are mandated to offer eligible customers the option to choose from multiple card networks at the time of issuance. Existing cardholders will also have the opportunity to exercise this choice at the time of renewal.

4. Authorized Card Networks: The authorized card networks identified by the RBI include American Express, Diners Club, MasterCard, National Payments Corporation of India - RuPay, and Visa.

5. Implementation Timeline: These guidelines will be effective six months from the date of the circular. However, the requirement to offer choice of networks at the time of issuance will not apply to credit card issuers with less than 10 lakh active cards issued.