The RBI directive means that a card issuing financial institution or non-bank can not power the card of any specific community on a buyer.
| Photo Credit: Reuters
The Reserve Bank of India (RBI) has issued instructions to card issuers not to enter into any association or agreement with card networks that restrain them from availing the services of different card networks.
As per this path, the card issuers can have to present an choice to their eligible clients to select from a number of card networks on the time of situation. For present cardholders, this feature wants to be supplied on the time of the following renewal.
The authorised card networks embody American Express Banking Corp., Diners Club International Limited., MasterCard Asia/Pacific Pte. Limited., National Payments Corporation of India — Rupay and Visa Worldwide Pte. Limited.
The authorised card networks used to tie-up with banks/non-banks for issuance of bank cards. The selection of community for a card issued to a buyer has been determined by the card issuer (financial institution/non-bank) and is linked to the preparations that the card issuers have with card networks in phrases of their bilateral agreements.
The RBI mentioned on a evaluate, “it was observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers.” The directive means that a card issuing financial institution or non-bank can not power the card of any specific community on a buyer.
