Debit Credit Card New Rules: How bank customers will benefit from this

Debit Credit Card New Rules: The Reserve Bank of India (RBI) on Wednesday issued a draft circular on the issuance of debit, credit and prepaid cards, wherein customers will have the power of their desired card network or issuer instead of continuing with their issuance bank or finance companies. 

The central bank in its draft circular has said card issuers, such as Visa, MasterCard, RuPay, shall issue cards across more than one card network and should provide an option to the customers to choose any one among the multiple card networks. According to a draft circular by RBI, card issuers would be prohibited from entering into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.

RBI said it is observed that arrangements existing between card networks and card issuers (banks and non-banks) are not conducive to the availability of choice for customers.”Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time,” as per the draft circular.

Card network portability refers to the ability of consumers to transfer their card accounts from one network to another. Just like we can switch our mobile service providers while keeping the same phone number, card network portability allows cardholders to maintain their existing card accounts, balances, and credit history while switching to a different payment network. “This flexibility empowers consumers to choose the network that best suits their needs, whether it’s based on factors like rewards programs, acceptance, or customer service.

It enhances competition among credit card networks and gives consumers more control over their financial choices,” said Amit Gupta, MD, SAG Infotech. The central bank has sought stakeholders’ comments on the draft circular till August 4.

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