RBI’s New Card Rules: Users Will Have a Choice
By: Geetanjali
RBI released a press release on Tuesday, March 5, 2024. As per the press release, RBI has updated the card issuing policy, RBI’s updated card policy will allow card users to choose from various card networks while availing their credit or debit cards.
RBI has also directed card issuing bodies and banks to engage with a card network exclusively, leaving no choice for users to choose from other available card neworks. Restricting a user’s freedom of choice.
In India we have the following authorised card networks: American Express Corp, Diners Club International, MasterCard Asia/Pacific Pte. Ltd, Rupay-NPCI (National Corporation Board of India), and Visa Worldwide Pte Ltd.
At present, if a user applies for a credit or debit card, there is no choice for them to choose from, they have to accept the network issuing body issues them. As card issuing bodies have exclusive contracts with the card networks, barring users to choose the card network of their choice.
As per the details RBI has given a time of six months to the card issuing bodies, will be applicable from September 6, 2024, six months from the date of press release.
As for the existing card users they can avail this benefit from their next issue.
Card issuing bodies having less than 10 lakh active card users are exempted under this new rule, and issuing bodies like American Express who issue credit cards through their own network are also exempted from this.
