RBI Final Notification Regarding Card Network Change And Agreement

[Sriky]

Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks.
Now, on March 6, 2024, the RBI released a notification clarifying the matter.
Some important points include:
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.
Card issuers and card networks shall ensure adherence to the above requirements in:

1. existing agreements at the time of amendment or renewal thereof, and
2. fresh agreements executed.

2. 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.
This provision will take effect six months from today. However, this requirement does not apply to credit card issuers with fewer than 10 lakh active cards issued by them.
3. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
This means that American Express India is excluded, and they are not obligated to offer multiple card networks to their customers as they issue credit cards on their own card network.

This news might disappoint those who were considering getting an American Express Platinum Charge Card on the RuPay card network.

Link to the notification: https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12619&Mode=0o

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wnside to this is that

Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks.
Now, on March 6, 2024, the RBI released a notification clarifying the matter.
Some important points include:
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.
Card issuers and card networks shall ensure adherence to the above requirements in:

1. existing agreements at the time of amendment or renewal thereof, and
2. fresh agreements executed.

2. 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.
This provision will take effect six months from today. However, this requirement does not apply to credit card issuers with fewer than 10 lakh active cards issued by them.
3. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
This means that American Express India is excluded, and they are not obligated to offer multiple card networks to their customers as they issue credit cards on their own card network.

This news might disappoint those who were considering getting an American Express Platinum Charge Card on the RuPay card network.

Link to the notification: https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12619&Mode=0

A downside to point 4 is that anyone who's taken/renewed their card recently needs to wait for expiry, which is typically 6 years from now.
Would be good if they give an option to change networks when the contract period is active.

@TechnoFino do you expect HDFC DCB to be launched on Visa/ Rupay? It would be a game changer for HDFC DCB as the acceptance is really bad, currently.

 

[Strange]

Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks.
Now, on March 6, 2024, the RBI released a notification clarifying the matter.
Some important points include:
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.
Card issuers and card networks shall ensure adherence to the above requirements in:

1. existing agreements at the time of amendment or renewal thereof, and
2. fresh agreements executed.

2. 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.
This provision will take effect six months from today. However, this requirement does not apply to credit card issuers with fewer than 10 lakh active cards issued by them.
3. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
This means that American Express India is excluded, and they are not obligated to offer multiple card networks to their customers as they issue credit cards on their own card network.

This news might disappoint those who were considering getting an American Express Platinum Charge Card on the RuPay card network.

Link to the notification: https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12619&Mode=0

Black colored texts are not clearly visible in dark theme.

 

[Sathishmani]

What about Axis Ace, Axis Airtel, SBI Cashback.. These are in Visa and Mastercard. Can we convert to Rupay? Or only existing rupay cards only allow to convert?

 

[ashwinkashwink is verified member.]

What about Axis Ace, Axis Airtel, SBI Cashback.. These are in Visa and Mastercard. Can we convert to Rupay? Or only existing rupay cards only allow to convert?

If you force bank's to issue card on particular RuPay they may downgrade/close the card if that card is not available in that network

 

[anonymuos]

How some c*****a banks still promote Visa/Mastercard despite this rule. They keep Visa/MC variant LTF and RuPay paid. e.g. Axis. Hope there is a future rule from RBI that pricing across all card networks must be the same, otherwise this rule is pointless.

 

[ashwinkashwink is verified member.]

How some c*****a banks still promote Visa/Mastercard despite this rule. They keep Visa/MC variant LTF and RuPay paid. e.g. Axis. Hope there is a future rule from RBI that pricing across all card networks must be the same, otherwise this rule is pointless.

This is Business 😂

Emotions/Sentiments Doesn't matter

 

[Sreedev]

Punjab National Bank small?

credit card Mark share*

 

[Aniket]

There's ambiguity from RBI's Side, given loophole to banks' by stating:

Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. (Refer: When I was arguing with one senior employee on the same matter by reading the provision from the old circular as he was denying for the conversion, he said you're not eligible as it's mentioned to eligible customers only.😂)


Who are eligible customers now? There's no such defination, we can assume believing if a bank is issuing a card on two different networks and then a NTB customer is eligible at the time of issue and a ETB is eligible at the time of renewal.


Earlier there was no such provision, rather it's said at the time of issue or at any subsequent time, customer can opt for Card Network. And previously too, eligible customers was used in that circular.

Why there's need to redraft the circular other than giving excuses to some banks having authorised partners?

 

[Abhishek012]

PNB Only Launch RuPay Cards 🌚

*Nepotism ki bhi Seema hoti hai 🤣

Yes bank, Axis bank, Airtel bank, RBL Bank Only Launch MasterCards 🌚

*Nepotism ki bhi Seema hoti hai 🤣

 

[ashwinkashwink is verified member.]

Yes bank, Axis bank, Airtel bank, RBL Bank Only Launch MasterCards 🌚

*Nepotism ki bhi Seema hoti hai 🤣

 

[Deleted member 9785]

game over for rotation

RBI asks card issuers to put in place mechanism to monitor end use of funds

The amended provisions will come into effect immediately, the RBI said.

www.moneycontrol.com

 

[m.a.d_eye]

You can choose which your payment network Visa, Mastercard, RuPay etc.
News Times of India
RBI's Original notification rbi.org.in

 

[imdjay]

Please search before posting. Information is already shared here and being discussed actively.

 

[m.a.d_eye]

Please search before posting. Information is already shared here and being discussed actively.

Can not find this one this actually came on 6th march from RBI, older one I can only see post where you can change your card network.
can you link that up please!!!

 

[imdjay]

Can not find this one this actually came on 6th march from RBI, older one I can only see post where you can change your card network.
can you link that up please!!!

RBI Final Notification Regarding Card Network Change And Agreement

Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks. Now, on March 6...

www.technofino.in

Mods, please delete or merge this.

 

[m.a.d_eye]

RBI Final Notification Regarding Card Network Change And Agreement

Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks. Now, on March 6...

www.technofino.in

Mods, please delete or merge this.

thanks for reference. Agree can delete my post.

 

[cardguy]

has anyone tried forcing HDFC to switch DCB to Visa which they will fail to) and end up issuing Infinia instead? 😆
I remember something similar happening during covid when hdfc was banned from issuing diners network card and whenever someone requested add-on card to their diners black card, they were given option to switch to Infinia.

 

[anonymuos]

How Axis gets around this rule. If it's offering certain card LTF on RuPay, the same card will be paid on Mastercard. Or some LTF Visa card will be paid on RuPay. And they can say that RBI never mentioned about pricing being equal on all card networks

 

[Abhishek012]

How Axis gets around this rule. If it's offering certain card LTF on RuPay, the same card will be paid on Mastercard. Or some LTF Visa card will be paid on RuPay. And they can say that RBI never mentioned about pricing being equal on all card networks

I noticed an interesting thing. In some banks, by default, Visa/Mastercard is suggested. We have to manually click and choose the RuPay network.

It's somewhat similar to what happens in shopping malls. Some companies put their products at the front to increase sales, and the mall charges them extra for it.

Banks might be doing something similar. Banks could be charging extra fees from Visa/Mastercard and highlighting them, while making the network change option for RuPay a bit more complicated.

 

[anonymuos]

Kotak just issued me Everyday Debit card on VISA network! Didn't even know this card was on Visa, I thought the Everyday Savings account launched with RuPay-exclusive Everyday Debit card !

From now on, I am going to call them Kotak Visa Mahindra Bank since I've 6 wrongly issued Visa DCs from them when I had requested RuPay.