Credit card users can now choose between Visa, Mastercard, RuPay and Amex
With its latest circular on cards networks, the Reserve Bank of India (RBI) has opened the doors to greater customer choice for credit and debit card users.
The RBI issued a circular on March 6 forbidding card issuers, that is, banks and non-banks, from entering into agreements with card networks that restrict them from using the services of other card networks.
Card payment networks comprise Visa and Mastercard, the two most widely use networks globally, and others such as American Express, Diners Club International and RuPay. RuPay is India’s indigenous card payment network developed by the National Payments Corporation of India (NPCI).
The central bank wants banks / non-banks to give their customers the choice to pick from multiple card networks when the card is issued to them. Existing customers are to be given this choice at the time of renewal of their card. However, credit card issuers with only up to 10 lakh active cards issued have been exempt from having to provide this choice.
