Give users option to pick credit card network: RBI

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New Delhi, March 6

The RBI on Wednesday directed banks to provide their eligible customers with an option to choose from multiple card networks at the time of issuing credit cards, a move which will benefit customers.

The RBI also barred credit card issuers (banks and non-banks) from entering into any arrangement or agreement with card networks such as American Express, MasterCard Asia, Diners Club and Rupay that restrain them from availing the services of other card networks.

Directive to banks

• The RBI has told banks to give option to customers to choose from multiple card networks
• Bars them from entering into pact with card networks that restrain them from opting for other platforms

For existing cardholders, the RBI said they should be provided the option at the time of the next renewal. This direction shall be effective six months from the date of this circular, it said.

It said the step was taken in public interest as its review showed some arrangements between card networks and issuers were not beneficial for customers. The order would not be applicable to issuers with 10 lakh or less active cards. Entities issuing credit cards on their own authorised card network are also excluded from the circular.