The Reserve Bank of India (RBI) released a draft circular in early July, seeking comments from stakeholders on a proposal for credit and debit card interoperability.
Mandate for Card Issuers
Card issuers will be required to provide multiple choices of card networks for customers.
This includes credit cards, debit cards, and prepaid cards.
Customers will have the option to choose their preferred card network at the time of card issuance and also at a later date.
The proposal aims to address the issue of limited customer choice in card networks.
Proposal for Multiple Network Cards
The RBI is proposing to introduce multiple network cards to increase competition and enhance customer options.
Issuers to Avoid Restrictive Agreements
Card issuers will be discouraged from entering into restrictive agreements that limit customer choices.
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The current lack of card network choice in India includes limited options such as American Express, Diners Club International, Mastercard, RuPay, and Visa. The proposal aims to address this limitation.
The proposed changes are expected to be implemented from October 1.
For existing customers, the option to choose multiple card networks will be available at the time of amendment or renewal.