RBI’s new directions on credit cards

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.

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