Visa, Matercard or Rupay? RBI wants card users to decide, not banks
Bank customers will soon have the option to select their card network with Reserve Bank of India On Wednesday, it asked banks and non-bank lenders to issue credit, debit and prepaid cards on multiple networks to give customers freedom of choice.
“In a review, it was noted that the arrangements in place between card networks and card issuers (banks and non-banks) are not conducive to providing choice to customers,” RBI said in a draft circular for comments.
Card networks include American Express, Diners Club International, Mastercard, Visa, and RuPay. Currently, the bank makes a network decision while issuing a card to its customers. To change this situation, the Reserve Bank of India has suggested “Card issuers should provide an option to their eligible customers to choose any one among the multiple card networks. Customers may exercise this option either at the time of issuance or at any time thereafter.”
Further, card issuers may not enter into any arrangement or agreement with card networks that precludes them from utilizing the services of other card networks. Card issuers must issue cards across more than one card network.
Seek feedback
The RBI said these changes will be effective on October 1st and stakeholders will be invited to submit their comments by August 4th.
Card issuers and card networks will have to ensure that the new requirements are adhered to even for existing customers at the time of renewal. All new agreements implemented from October must give customers the option to select the card’s network.