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Journalism of Courage
The Reserve Bank of India (RBI) has directed card issuers to provide an option to their eligible customers to choose from multiple card networks at the time of issue.
Card issuers should not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks, the RBI said in a circular. Authorised card networks include American Express Banking Corp, Diners Club International, MasterCard Asia/ Pacific Pte. Ltd, National Payments Corporation of India–Rupay and Visa Worldwide Pte Ltd, the RBI said.
Explaining the reasons for the decision, the RBI said, “on a review, it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers.” Currently card issuers decide the card network they prefer and force it on the customers.
For existing cardholders, this option may be provided at the time of the next renewal, it said. “Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular,” the RBI said.
