How about reserve on AMEX network
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RBI New Proposed Guidelines for Card Networks: Empowering Customers and Promoting Choice in Card Networks
- Thread starter TechnoFino
- Start date
Avishma1
TF Select
😊😊😊
Rbi seems to be in mood to remove card network restrictive agreement with bank to not allow cards to be issued in other networks
And give the customer the choice to change network freely
Also allowing the banks to issue all cards in any network
Will love to hear the thoughts of the community
Below is the draft circular
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Providers / Participants (Banks and Non-banks)
Madam / Dear Sir,
Draft Circular - Arrangements with Card Networks for issue of Debit, Credit and Prepaid Cards
The authorised card networks1 tie-up with banks / non-banks for issuance of debit / credit / prepaid cards. The choice of affiliated network2 for a card issued to a customer is decided by the card issuer and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements.
2. On a review, it is observed that arrangements existing between card networks and card issuers (banks and non-banks) are not conducive to the availability of choice for customers.
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:
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
And give the customer the choice to change network freely
Also allowing the banks to issue all cards in any network
Will love to hear the thoughts of the community
Below is the draft circular
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Providers / Participants (Banks and Non-banks)
Madam / Dear Sir,
Draft Circular - Arrangements with Card Networks for issue of Debit, Credit and Prepaid Cards
The authorised card networks1 tie-up with banks / non-banks for issuance of debit / credit / prepaid cards. The choice of affiliated network2 for a card issued to a customer is decided by the card issuer and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements.
2. On a review, it is observed that arrangements existing between card networks and card issuers (banks and non-banks) are not conducive to the availability of choice for customers.
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:
- 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 shall issue cards across more than one card network.
- 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.
- existing agreements at the time of amendment or renewal thereof, and
- fresh agreements executed from the date of this circular.
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
My bad how come one finds a thread only after its posted checked 3 pages of whats new and found nothing 🫠
Seems interesting. If there is healthy competition between card issuers and customers are rewarded, its win win situation for all. Lets see how it plays out.
I think the card network companies will now have to compete more not just with other networks but also with the users in order to keep the user from switching this means they need to provide better features ie more lounge access and other benefits don’t think rewards points will be affected by it
Also won’t be surprised if card network companies try to persuade customers of other card networks to switch to their networks by providing some joining bonus
Also won’t be surprised if card network companies try to persuade customers of other card networks to switch to their networks by providing some joining bonus
I am of the opinion that this move will eventually kill the entire rewards ecosystem. With Rupay+UPI not having MDR it will only become unsustainable for credit card companies, and the likes of Visa or MasterCard might scale down their operations in the country, and the entire rewards and benefits ecosystem will go away with it. With no MDR Rupay cards might only afford to offer nominal benefits. All these devaluations are only signs of things to come.
Sreerag
TF Premier
Even though the RBI circular clearly shows that customer has the right,
I can't wait to see:
1. American Express RuPay Platinum
2. Axis Reserve/Magnus RuPay
3. HDFC Regalia AmEx
4. ICICI Emeralde RuPay
Anyways, let's see TF community members enjoying and some exploiting the new cards.
I can't wait to see:
1. American Express RuPay Platinum
2. Axis Reserve/Magnus RuPay
3. HDFC Regalia AmEx
4. ICICI Emeralde RuPay
Anyways, let's see TF community members enjoying and some exploiting the new cards.
n00b
TF Select
Just read this article.
Hopefully, this will prevent people from hunting for a Rupay card endlessly.
Hopefully, this will prevent people from hunting for a Rupay card endlessly.
I think, tab tak Visa and Mastercard UPI pe aa aane ki puri kooshish karenge. 🙂.
But according to this news post any cards network can be changed. Agar Yeh ho gaya to visa mastercard ki chutti ho jayegi India se🤣 @Abhishek012 @ashwink
Abhishek012
TF Pioneer
Tumlog toh pahele ja kar english padhna sikho phir ache se apna IQ level increase karo.
RBI ka guidelines kuch aur bolte hai aur tumlog kuch aur samjh lete ho. 🤣🤣
I want axis Neo, sbi simply save and pnb patanjali on AMEX XD
Abhishek012
TF Pioneer
John123
TF Premier
pradeepG
TF Premier
ya to UPI ke liye separate slab aajayega rewars/cashback ka ya fir minimium amount spend type ki condition aajayengi ya purntaya (completely) straightforward zero/no reward aajayega (easliest for banks), only dedicated cards like kiwi-kwik or hdfc upi rupay will not be affected by this wave of extinction of reward/cashback on UPI transactions.
I feel I am missing something here, maybe too dumb to understand this. First, I need to understand how this will work, if all cards are offered with all card network variants:
- will it mean that the same card will have different features, offers and terms based on the network that it is issued on? If so, how is it different from the card issuer offering different cards on different networks the way they are doing now? Will it not just create more confusion?
- If it means that, unlike the above point, the same card will have to have largely the same features irrespective of the network they are issued on, it will mean that none of the networks will have any USP, everyone will offer the same as the other network, rather be forced to offer the same. This will kill competition, innovation and creativity, as well as benefits to customers as there will be no incentive for all networks to together offer a more customer friendly offering because customers will have to opt for whatever is being offered by all networks. They can choose a different card by a card issuer, but choice of the network will be redundant.
- I don't know why I feel that it is not about giving choice to the customer, but it is about killing competition for Rupay using the government's/RBI's muscle. Rather than competing on a better offering, they are trying to bring other networks to their level, as the other networks will not be able to offer anything better than Rupay and all networks will become the same. So the other networks can not offer anything better than Rupay even if they wanted to. So Rupay need not compete with them on better offerings. It can give average to no offers and still be in its comfort zone knowing that others also cannot offer any better.
I hope yor have read my posts about this topic here...
https://www.technofino.in/community...ing-choice-in-card-networks.14796/post-263542
RBI New Proposed Guidelines for Card Networks: Empowering Customers and Promoting Choice in Card Networks
Btw, I'm waiting to see American Express Platinum Rupay Credit Card :ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO: With JCB and discover partnership
www.technofino.in
If you carefully observe each point and how it should be interpreted then
My post may provide you with some sort of clarity about your confusions.
First thing first, practically speaking, there will never be a case where all cards will be available on all networks...
It just doesn't work that way, commercially speaking.
It's all about the ability to provide such an opportunity to both issuer and ability to choose the desired network for a customer IF, and only IF the card is available on more than one networks. So from an issuer point of view it is voluntarily action, not a compulsive option..
more later
Last edited:
Indeed this is a wonderful posts and explains things very clearly. I had understood this though, but this post gives much more clarity to me. However, I am still a little too dumb to understand the point of this. How are the two scenarios different - 1) Bank offers card A on VISA and RUPAY variants and customer can choose either variant; 2) Bank offers card A on VISA and card B on RUPAY and customer can choose either card? Assuming that the customer is smart enough to understand the difference being offered on both variants, he will also be smart enough to understand the difference in both the cards, and so can make a judicious choice in either case. And if all offerings are exactly the same, no matter what choice the customer makes it will make no difference.I hope yor have read my posts about this topic here...
https://www.technofino.in/community...ing-choice-in-card-networks.14796/post-263542
RBI New Proposed Guidelines for Card Networks: Empowering Customers and Promoting Choice in Card Networks
Btw, I'm waiting to see American Express Platinum Rupay Credit Card :ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO: With JCB and discover partnership
If you carefully observe each point and how it should be interpreted then
My post may provide you with some sort of clarity about your confusions.
First thing first, practically speaking, there will never be a case where all cards will be available on all networks...
It just doesn't work that way, commercially speaking.
It's all about the ability to provide such an opportunity to both issuer and ability to choose the desired network for a customer IF, and only IF the card is available on more than one networks. So from an issuer point of view it is voluntarily action, not a compulsive option..
more later
Both are networks, you can't have 2 networks on the same card
