NEW DELHI: The Reserve Bank of India (RBI) on Wednesday asked banks and non-bank financial companies (NBFCs) to issue debit, credit and prepaid cards on more than one card-networks such as Rupay, Visa, Mastercard, and American Express.
This gives customers more options to choose from and closes the door to any exclusive tie-ups between banks and card networks. “On a review, 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,” the Reserve Bank said in a draft circular seeking comments. “Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks,” it said.
The proposed rules will come into effect from October 1. A card network is an entity that facilitates payment card transactions. Authorised card networks in India are American Express Banking, Diners Club International, MasterCard Asia/ Pacific, National Payments Corporation of India – RuPay, and Visa Worldwide.RBI said card issuers and card networks should ensure adherence to existing agreements at the time of amendment or renewal.