RBI’s new instructions to banks: Give clients a choice of many card networks

According to RBI, card issuers must give their qualified clients the choice of selecting from a number of different card networks.Card issuers shouldn’t sign any agreements with card networks that prevent them from using the services of other card networks, according to the Reserve Bank of India (RBI). Additionally, the central bank stated that card issuers must give their qualified clients the choice to select from a number of card networks at the time of issuance.

The RBI stated that present arrangements between card networks and issuers may not support customers’ availability of choice, and that existing cardholders may be offered this option at the time of the next renewal.The RBI stated that certain agreements between card networks and issuers were restricting customers’ options, and that the rules are intended to ensure more choice and flexibility for users in the issuance and usage of credit cards. The following was ordered by the RBI.

It is against the law for card issuers to sign contracts that prevent them from using services offered by other card networks.When issuing a card, card issuers are required to give eligible customers the option to choose from a number of card networks.This option will be available to current cardholders when it comes time for their next card renewal.American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/Pacific Pte. Ltd., National Payments Corporation of India–Rupay, and Visa Worldwide Pte. Limited are the designated card networks according to the RBI’s mandate.