iNokia
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RBI New Proposed Guidelines for Card Networks: Empowering Customers and Promoting Choice in Card Networks
- Thread starter TechnoFino
- Start date
How with rupay card economy will be controlled?
Rupay debit cards mdr is paid by banks only, as they take Indian tech might pays off some to npci which will be very less compared visa/mc charges.
Same applicable to credit cards.
Rupay jcb variants has more acceptance I hope you aware.
What are your sleep/rest timings?
nirsark
TF Premier
Chill... it was just for fun.
Abhishek012
TF Pioneer
This is Chinese propaganda to kick out RuPay cards from Maldives.
Yes, JCB has more acceptance but we want native network of RuPay to accept worldwide (at least in all major countries).
D
Deleted member 7241
Guest
Actually.........Hip Hip Hurrey..........
beingmohit
TF Premier
I don't think what you are implying is what the RBI Guidelines suggest. From what I understand, if a card is offered in multiple variants by the provider, they have to entertain requests to switch between those variants.
It does not mean all cards should be available in all variants. Had this been true, Amex would probably shut down!
It does not mean all cards should be available in all variants. Had this been true, Amex would probably shut down!
I wonder if we will be able to choose AMEX network
Akash Topder
TF Premier
Are bhai bhai bhai bhai!!!
Amex is an issuer in itself. Toh Amex pe applicable nhi hota.
If I remember correctly, first challenge to Visa was done by France in 1960s. They created CB Carte Blueu but it operated only within France. They faced huge issues with international transactions in 1970s and then did tie up with Visa. I guess they still exist.
CDG is a visionary who thought about a much distant future in all spheres but look at where France is now.
Amex has franchised with ICICI in India to provide network cards.
Abhishek012
TF Pioneer
Co-branded (dual network) cards are different thing.
Yes, CB Carte Blueu Network - Visa card still issue in France
ICICI bank Canada branch also issue co-branded Interac - visa card.
There are many countries available that impose restrictions on Visa/Mastercard but issue local cards co-branded with the Visa/Mastercard international network either directly or indirectly.
Yeah but my point was about a national card network that challenged Visa in those times itself. And then they have to partner with Visa due to issues with international transactions.
I just saw RBI Interdepartmental group has just published their reco report on internationalisation of Rupee. So hoping things are going in right direction 👍
This is my take on the proposed new guidlines in simple terms.. These are my opinions based on my interpretation. I am not very well versed with these card issuers,card networks, acquiring bank, mdr etc... concepts...
To start with, @TechnoFino had already explained these guidelines with some illustrations.. I will write in my way , trying to be as simple as possible citing simple examples. This is not a comprehensive evaluation..
This means, the Banks should not enter in to an exclusive binding agreement to issue a Card with only ONE network , there by restricting the Banks ability to enter in to an agreement with ANOTHER network. With this Banks can , (not should) issue a card on more than one network, if they want. It is entirely depending upon Bank's decision...( Networks will have no say in this)
A hypothetical example.
Bank1 issues a Card on VISA network. Bank1 can issue the same card on Master/Rupay netwroks also, if it wishes to.
To better understand this concept we should look in the opposite direction.
i.e. VISA can not say to Bank1 you can't issue the same card on Master/ Rupay...
This doen't necessarily mean the Banks should issue that card in all the networks... Banks will have liberty to issue the same card in one/two/three/ etc networks.
b. Card issuers shall issue cards across more than one card network.
Bank1 should not say I will issue all my cards on VISA only / Master only / Rupay only... They should issue on more than one network.
Here, it says cards . There is a bit of confusion here. i.e.
Does this rule applicable to (a single specified card) / (all cards put together) by that Bank...
Case 1 Cards mean "a single specified card".
If this is the case, each and every card should be issued on more than one Network --- This is not practical.. I highly doubt this is correct
Case 2 Cards mean( all cards put together).
Then Bank1 should issue at least one card on two or more networks...
c. 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.
This is the most important one as far as the customers are concerned and need to be understood correctly...
Banks should give option to the customer to choose the network they want from the availble networks that the card was issued on.
Example 1:
Bank1 should say to the customer "Hey we have this card on VISA. MASTER and RUPAY, which one do you want ?? "
Then customer say " Hey I want this card on RUPAY", then Bank should obilige this request and give that card on RUPAY.....
Example 2:
Bank1 says " Hey we have this card on VISA and RUPAY , which one do you want??"
then customer says " I will have on RUPAY, thanks". then Bank1 must honour the customer's request.
Example 3:
Bank1 says " Hey customer, we have this card on MASTER only... would you want to take it??"
Then customer "CAN NOT" say I want this on RUPAY or "AMEX" etc...
In a nutshell:
1) Banks can issue the a card on more than one network . Networks can't restrict the banks to listen to them only and issue that card only on their network.
2) Customers can choose the network they want form the issued and available networks pool only by the Bank. He can not demand that card on his own preferred network if that is not in the available list of issued networks by that bank for that card..
Hope this is not as clear as mud...
Good evening to all...
To start with, @TechnoFino had already explained these guidelines with some illustrations.. I will write in my way , trying to be as simple as possible citing simple examples. This is not a comprehensive evaluation..
- Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
This means, the Banks should not enter in to an exclusive binding agreement to issue a Card with only ONE network , there by restricting the Banks ability to enter in to an agreement with ANOTHER network. With this Banks can , (not should) issue a card on more than one network, if they want. It is entirely depending upon Bank's decision...( Networks will have no say in this)
A hypothetical example.
Bank1 issues a Card on VISA network. Bank1 can issue the same card on Master/Rupay netwroks also, if it wishes to.
To better understand this concept we should look in the opposite direction.
i.e. VISA can not say to Bank1 you can't issue the same card on Master/ Rupay...
This doen't necessarily mean the Banks should issue that card in all the networks... Banks will have liberty to issue the same card in one/two/three/ etc networks.
-------------------------------
b. Card issuers shall issue cards across more than one card network.
Bank1 should not say I will issue all my cards on VISA only / Master only / Rupay only... They should issue on more than one network.
Here, it says cards . There is a bit of confusion here. i.e.
Does this rule applicable to (a single specified card) / (all cards put together) by that Bank...
Case 1 Cards mean "a single specified card".
If this is the case, each and every card should be issued on more than one Network --- This is not practical.. I highly doubt this is correct
Case 2 Cards mean( all cards put together).
Then Bank1 should issue at least one card on two or more networks...
-------------------------------
c. 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.
This is the most important one as far as the customers are concerned and need to be understood correctly...
Banks should give option to the customer to choose the network they want from the availble networks that the card was issued on.
Example 1:
Bank1 should say to the customer "Hey we have this card on VISA. MASTER and RUPAY, which one do you want ?? "
Then customer say " Hey I want this card on RUPAY", then Bank should obilige this request and give that card on RUPAY.....
Example 2:
Bank1 says " Hey we have this card on VISA and RUPAY , which one do you want??"
then customer says " I will have on RUPAY, thanks". then Bank1 must honour the customer's request.
Example 3:
Bank1 says " Hey customer, we have this card on MASTER only... would you want to take it??"
Then customer "CAN NOT" say I want this on RUPAY or "AMEX" etc...
-------------------------------
In a nutshell:
1) Banks can issue the a card on more than one network . Networks can't restrict the banks to listen to them only and issue that card only on their network.
2) Customers can choose the network they want form the issued and available networks pool only by the Bank. He can not demand that card on his own preferred network if that is not in the available list of issued networks by that bank for that card..
Hope this is not as clear as mud...
Good evening to all...
Last edited:
Given this, How the game should be played now ....
As the Government (thru the RBI) cleared the decks for the Banks to issue their cards at their own choice ( by lifting the exclusive binding restriction of the current dominant network providers), the ball now is fairly in the court of "Rupay", to up their game and penetrate into the Indian as well as overseas market in a big way to become one of the key network providers nationwide to start with , and obviously internationally as well in the short to medium term.
This international acceptance of Rupay is going to be very key in this respect , as the banks would obviously prefer to partner with largely accpeted network to increase their potential revenue in different forms.
What it means to different parties:
For Rupay
These guidlines would provide a level playing field for Rupay, in the market where it was predominantly dominated by the two international giants..
Time to go hard for Rupay and make its presence felt in a big way... It will be now or never for Rupay as I think there were so many institutions that were vanished by gobbled up by these two giants in the history..
For Banks ( Indian Banks)
Assuming Rupay rise to the occasion , banks should do their part in establishing Rupay as one of the leading network providers.
For Customers:
The customers are now can choose their Rupay option and not be denied by the Banks and be part of the big Rupay story which is unfolding...
For the Two Big Giants
Increased competition as far as the Indian market is concerned. No need to worry in the International market at all as of now... Can win this battle by flexing their muscle as history suggests, if Rupay doesn't play thier cards right.
Now all eyes are back on RUPAY
Good luck...
As the Government (thru the RBI) cleared the decks for the Banks to issue their cards at their own choice ( by lifting the exclusive binding restriction of the current dominant network providers), the ball now is fairly in the court of "Rupay", to up their game and penetrate into the Indian as well as overseas market in a big way to become one of the key network providers nationwide to start with , and obviously internationally as well in the short to medium term.
This international acceptance of Rupay is going to be very key in this respect , as the banks would obviously prefer to partner with largely accpeted network to increase their potential revenue in different forms.
What it means to different parties:
For Rupay
These guidlines would provide a level playing field for Rupay, in the market where it was predominantly dominated by the two international giants..
Time to go hard for Rupay and make its presence felt in a big way... It will be now or never for Rupay as I think there were so many institutions that were vanished by gobbled up by these two giants in the history..
For Banks ( Indian Banks)
Assuming Rupay rise to the occasion , banks should do their part in establishing Rupay as one of the leading network providers.
For Customers:
The customers are now can choose their Rupay option and not be denied by the Banks and be part of the big Rupay story which is unfolding...
For the Two Big Giants
Increased competition as far as the Indian market is concerned. No need to worry in the International market at all as of now... Can win this battle by flexing their muscle as history suggests, if Rupay doesn't play thier cards right.
Now all eyes are back on RUPAY
Good luck...
Please refer to my above two posts. They may throw some light with regard to your questions..
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it's not bravest thing.
Npci feels hard to collaborate for international.
So atleast they think if at domestic level they can increase rupay cards then it will more benefit for collaboration talks.
99% are not going to take rupay debits unless they have rewards like upto 100 Discount on bill payment and jcb offers in foreign customers.
Only for upi on credit card but that too will end after all having a rupay card.
Already the worst axis giving iocl rupay cards even for it's highest centurion limit like addon.
The most cunning hdfc bank directly giving virtual cards to escape from card and logistic charges.
