RBI Update: Keeping in mind the interests of the customers, the Reserve Bank of India has issued a draft circular regarding the rules for issuing debit, credit and prepaid cards. . In this circular,
RBI has underlined that for issuing debit, credit and prepaid cards, Card Networks have an agreement with card issuing banks or non-banking institutions, which is not in favor of the customers. RBI has sought suggestions from stakeholders on this draft circular by August 4, 2023.
This draft circular of RBI gives a mandate to card issuing banks or non-banks that they can issue cards with more than one card network. Along with this, it gives the option to the customers that they can choose any one of the multiple card networks. That is, the customer will have the option to choose from Visa, Mastercard, American Express, Diners Club International or RuPay.
The RBI said that card issuing banks or non-banks shall not enter into any agreement or arrangement with card networks that prevent them from using the services of other card networks.
RBI has also stated in the draft circular that card issuing banks or non-banks and card networks shall ensure that they comply with these rules while executing fresh agreements from the date of this circular, while amending or renewing existing agreements. will follow.
The rule of issuing cards of more than one card network for the card issuing bank or non-bank and the order for the customers to choose one of the multiple card networks will come into force from October 1, 2023.
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