Card issue RBI issues circular on issuance of debit card, credit card and prepaid cards
Mumbai: The Reserve Bank of India (RBI) released a draft circular in connection with the issuance of debit, credit, and prepaid cards on Tuesday.
The circular focuses on the arrangements between card issuers and card networks for the issuance of such cards.
According to the circular, the RBI said that card issuers should offer cards that are compatible with multiple card networks.
Furthermore, customers should be provided with the flexibility to choose their preferred card network from the available options.
This initiative aims to enhance competition and provide greater choices to customers in the card payment ecosystem.
The RBI's draft circular highlights that the current arrangements between card networks and card issuers, including banks and non-banks, are not favourable for customers.
To address this, the central bank emphasises that card issuers should refrain from entering into any agreements or arrangements with card networks that restrict them from using the services of other card networks.
Further, the RBI states that both card issuers and card networks must ensure compliance with existing agreements during the process of amendment or renewal.
This provision aims to ensure transparency and fair practices in the relationships between card issuers and card networks, benefiting the customers and promoting healthy competition in the market.
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