RBI issues draft circular on issuance of debit, credit and prepaid cards
The changes will be effective from 1 October onwards and the feedback of the stakeholders is invited by 4 August
RBI issues draft circular on issuance of debit, credit and prepaid cards
The changes will be effective from 1 October onwards and the feedback of the stakeholders is invited by 4 August
The Reserve Bank of India has asked banks and non-bank financial companies (NBFCs) to issue credit, debit, and prepaid cards on multiple networks to provide customers the freedom of choice.
The draft circular mandates card issuers (banks/non-banks) to issue cards on more than one card network. It also provides customers the facility to choose any one among the multiple card networks. This option can be exercised by customers either at the time of issue, or subsequently.
The circular read, "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.”
Additionally, the card issuers will not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks. They will issue cards across more than one card network.
The card issuers and card networks will have to adhere to the existing agreements at the time of the amendment or renewal, and fresh agreements executed from the date of the circular.
A network of American Express, Diners Club International, Mastercard, Visa and homegrown RuPay provide services to customers in India, but the provider is usually predetermined by the bank depending on the card issued to the customer.