The Reserve Bank of India (RBI) has directed credit card issuers to give customers an option to choose from multiple card networks.
Key points
- The RBI has ordered banks and non-banks that issue credit cards not to enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
- The move is beneficial for customers as they will get the freedom to choose from multiple card networks.
- The card issuers should provide an option to their eligible customers to choose from multiple card networks at the time of issue.
- There are five authorised card networks in India: American Express Banking Corp, Diners Club International Ltd, MasterCard Asia/ Pacific Pte Ltd, National Payments Corporation of India–Rupay, and Visa Worldwide Pte Ltd.
- The RBI also said that card issuers such as American Express, who issue credit cards on their own authorised card network, are excluded from the new norms.
