India cenbank seeks to give customers choice of card network
2023.07.05 10:11
© Reuters. FILE PHOTO: The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File Photo
BENGALURU (Reuters) – The Reserve Bank of India (RBI) on Wednesday asked banks and non-bank lenders to issue credit, debit and prepaid cards on multiple networks to give customers the freedom to choose.
“On a review, it is observed that arrangements existing between card networks and card issuers (banks and non-banks) are not conducive to the availability of choice for customers,” the RBI said in a draft circular seeking comments.
Networks of American Express (NYSE:), Diners Club International, Mastercard (NYSE:), Visa (NYSE:) and homegrown RuPay provide services to customers in India, but the provider is usually predetermined by the bank depending on the card issued.
Card issuers should issue them across more than one network, the RBI said in a circular, also adding that financial institutions should provide an option to their eligible customers to choose from the multiple card networks in the country.
That option may be exercised by customers either at the time of issuing, or later, it added.
These changes will be effective October 1 and stakeholder feedback is invited by Aug. 4, the RBI said.
The central bank also said card issuers should not enter any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
