RBI changed the rules related to credit card issuance and use. Loktej Business News
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New Delhi, March 06 (HS). The Reserve Bank of India (RBI) has changed the rules related to the issuance and use of credit cards. This will give you the convenience of choosing the card network as per your choice while taking a credit card.
The Reserve Bank on Wednesday issued new guidelines for credit card networks and card issuing banks and NBFCs. According to the new guidelines of RBI, now card issuers will have to give their customers the option to choose from more than one card network while issuing credit cards. Banks have to ask the customer which network credit card he wants.
According to the new guidelines of RBI, this option can be provided to existing cardholders at the time of next renewal. These instructions will not be applicable to credit card issuers with less than 10 lakh active cards. RBI said that these rules regarding customer choice at the time of issuance will remain in effect for six months from the date of notification.
At present there are five card network companies in India – Visa, MasterCard, RuPay, American Express and Diners Club. These companies have tie-ups with different financial institutions. Due to this, the customer does not get the option to choose the card network of his choice. Some card networks charge higher annual fees on credit cards than others. In such a situation, if a bank does not give you the option of more than one card network, then you will be forced to pay only for the network which has higher fees. At the same time, if you get the option of more than one card network, then you will be able to choose the right option based on your need, its fees and the facilities available on the network.
The world’s largest card company is Visa. It is present in more than 200 countries and territories. Its market capitalization is $489.50 billion (about Rs 40 lakh crore). The second most popular cashless payment company after Visa is MasterCard. It is present in 150 countries of the world, whose market cap is 372.55 billion dollars, about 30 lakh crore rupees. According to a report, there were 8.6 crore credit cards in circulation in India by April 2023.
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