Mumbai: A step has been taken with the aim of promoting Competition, reserve Bank of India has ordered card issuers to allow customers to choose from multiple networks such as visa, master card And rupees,
It has also asked banks to stop entering into special agreements with card networks. This step is positive for NPCIRuPay cards because of their UPI integration. However, most banks have flagship card products in partnership with Visa or MasterCard.
In 2022, RBI allowed cardholders to store their card details in UPI apps and make payments by scanning QR codes. While the circular applies to credit card networks, only RuPay has received permission to integrate with UPI. This instruction will be effective in six months.
According to bankers, customers are being given the option to choose card network Major changes to IT systems will be required. For most banks, card issuance is a straightforward process – the customer applies online, the bank approves the application, and the card is sent for printing.
“This is in line with RBI’s vision of bringing credit card portability, providing customers a choice of networks. As a leading bank, we support this. As of today, we work with all major networks – both international and RuPay. We offer a wide range of six credit cards on RuPay,” said Ambuj Chandna, President (Consumer Assets), Kotak Mahindra Bank.
The new circular means customers will no longer be limited to the card network chosen by the issuer. Banks will have to provide this option to existing cardholders at the time of renewal. Issuers with less than 10 lakh active cards will be exempted from these requirements. Those issuing credit cards on their own networks (like American Express) will also be exempted from this circular.
It has also asked banks to stop entering into special agreements with card networks. This step is positive for NPCIRuPay cards because of their UPI integration. However, most banks have flagship card products in partnership with Visa or MasterCard.
In 2022, RBI allowed cardholders to store their card details in UPI apps and make payments by scanning QR codes. While the circular applies to credit card networks, only RuPay has received permission to integrate with UPI. This instruction will be effective in six months.
According to bankers, customers are being given the option to choose card network Major changes to IT systems will be required. For most banks, card issuance is a straightforward process – the customer applies online, the bank approves the application, and the card is sent for printing.
“This is in line with RBI’s vision of bringing credit card portability, providing customers a choice of networks. As a leading bank, we support this. As of today, we work with all major networks – both international and RuPay. We offer a wide range of six credit cards on RuPay,” said Ambuj Chandna, President (Consumer Assets), Kotak Mahindra Bank.
The new circular means customers will no longer be limited to the card network chosen by the issuer. Banks will have to provide this option to existing cardholders at the time of renewal. Issuers with less than 10 lakh active cards will be exempted from these requirements. Those issuing credit cards on their own networks (like American Express) will also be exempted from this circular.