130902What problems are there with recycled mobile numbers?
RBI also asked the credit card issuers to not enter into any arrangement or agreement with card networks that restrain customers from availing the services of other networks
The Reserve Bank of India (RBI) on Wednesday asked banks to provide its customers the option to choose credit or debit cards from multiple card networks.
RBI also asked the credit card issuers to not enter into any arrangement or agreement with card networks that restrain customers from availing the services of other networks.
“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,” the Reserve Bank said in a circular.
For the existing customers, this choice may be given at the time of next renewal.
“The RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs… 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 card companies that have been listed in the circular are American Express Banking Corp, Diners Club International Ltd, MasterCard Asia/Pacific Pte Ltd, and National Payments Corporation of India — Rupay and Visa Worldwide Pte Limited.
RBI, however, said the direction would not be applicable to credit card issuers with active users numbering 10 lakh and less.
“Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular,” it said.
The directions of providing options to the eligible customers to choose from multiple card networks would be effective 6 months from the date of this circular, it added.