RBI asks card issuers to allow users to select card network
By MYBRANDBOOK
The Reserve Bank of India (RBI) has instructed card issuers - which include banks, non-banks, and approved payment system providers not to sign any contracts or agreements with card networks that would prevent them from using other card networks' services. This directive requires card issuers to give their eligible consumers the choice to select from a number of different card networks at the time of issuance. This must be offered to current cardholders when their next renewal comes up.
Currently in India the authorised card networks include American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/ Pacific Pte. Ltd., National Payments Corporation of India–Rupay, and Visa Worldwide Pte. Ltd.
As per the current practice the authorised card networks tie-up with banks/non-banks for issuance of credit cards and the choice of network for a card issued to a customer is decided by the card issuer (bank / non-bank) and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements, the RBI said in a circular.
“On a review, it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers,” the RBI said adding it had issued the fresh directive keeping the interest of payment system and public interest in mind.
The RBI has asked card issuers and card networks to ensure adherence to the above requirements and execute fresh agreements to accommodate the changes.
However, the directions will not be applicable to credit card issuers with the number of active cards issued by them being 10 lakh or less in number, the RBI said in the circular without specifying the reason.
As per the circular, card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
Ambuj Chandna, President – Consumer Assets, Kotak Mahindra Bank, said, “This in line with RBI’s vision of bringing in credit card portability, offering customers the choice of a network. As a leading bank, we support this. As of today we do work with all key networks – both International and RuPay. In fact, we offer a wide range of 6 credit cards on RuPay which can be used for UPI transactions.”
Singapore to remove One-Time Passwords from Bank Accounts
According to the Monetary Authority of Singapore, clients who utilise secur...
Is 375 million Airtel subscribers database breached?
When a hacker claims to have accessed and put up for sale a customer databa...
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
Icons Of India : AALOK KUMAR
Aalok Kumar is celebrated as a global leader and recipient of the Peop...
Icons Of India : AMIT CHADHA
Amit Chadha serves as the CEO and Managing Director of L&T Technology ...
Icons Of India : NIKHIL RATHI
Co-founder & CEO of Web Werks, a global leader in Data Centers and Clo...
NPCI - National Payments Corporation of India
NPCI is an umbrella organization for operating retail payments and set...
BEL - Bharat Electronics Limited
BEL is an Indian Government-owned aerospace and defence electronics co...
UIDAI - Unique Identification Authority of India
UIDAI and the Aadhaar system represent a significant milestone in Indi...
Indian Tech Talent Excelling The Tech World - Aman Bhutani, CEO, GoDaddy
Aman Bhutani, the self-taught techie and CEO of GoDaddy, oversees a co...
Indian Tech Talent Excelling The Tech World - Steve Sanghi, Executive Chair, Microchip
Steve Sanghi, the Executive Chair of Microchip Technology, has been a ...
Indian Tech Talent Excelling The Tech World - Vinod Dham, Founder & Executive Managing Partner, IndoUS Venture Partners
Vinod Dham, known as the “Father of the Pentium Chip,” has left an...