Give option to customer to choose network while issuing bank card: RBI
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Mumbai: The Reserve Bank has directed banks to provide eligible customers the option to choose from multiple card networks while issuing credit or debit cards. The central bank has also asked credit card issuers not to enter into any agreement or arrangement with the card networks that prevents customers from availing the services of other networks.
The Reserve Bank of India (RBI) said in a circular that, upon review, it was found that some of the arrangements existing between card networks and card issuers are not conducive to providing choice to customers. The central bank said, in such a situation, it is directed that card issuers will not enter into any arrangement or agreement with the card network which prevents customers from availing the services of other card networks. RBI said that for existing cardholders, this option can be given at the time of next renewal of the card.
American Express Banking Corp, Diners Club International Ltd, MasterCard Asia/Pacific Pte Ltd, National Payments Corporation of India-Rupay and Visa Worldwide Pte Ltd are listed as card networks. According to the circular, card issuers and networks will have to ensure adherence to RBI guidelines in existing agreements at the time of amendment or renewal and while executing new agreements.
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