Winning Bizness Desk

Mumbai. Giving a big relief to lakhs of customers, the Reserve Bank of India has issued a draft circular regarding the norms for issuance of debit, credit and prepaid cards. In this circular, the RBI highlighted that for issuing debit, credit and prepaid cards, card networks have agreements with card issuing banks or non-banking institutions, which is not in the interest of consumers. RBI has invited suggestions from stakeholders on this draft circular till August 4, 2023. The RBI has said that card issuing banks or non-banking entities should not enter into any agreement with a card network that would prevent them from using the services of other card networks. The RBI has also said in the draft circular that card issuing banks or non-banking institutions and card networks should follow these norms while executing new contracts, amending or renewing existing contracts from the date of this circular.

To be effective from October 1, 2023

RBI's draft circular mandates card issuing banks or non-banking institutions to issue cards with more than one network. Along with this, through this draft circular, customers have also been given an option to choose from multiple card networks. That is, customers will have the option to choose from Visa, Mastercard, American Express, Diners Club International or RuPay. The rule for card issuing banks or non-banking institutions to issue cards from multiple card networks and ordering customers to choose one of multiple card networks will come into effect from October 1, 2023.