Arrangements with Card Networks for issue of Credit Cards

Summary:

The Reserve Bank of India (RBI) has issued Directions to Authorised Payment System Providers/Participants (Banks and Non-banks) regarding Arrangements with Card Networks for the issue of Credit Cards. The directions aim to ensure that card issuers do not restrict customers' choices by limiting their options to a single card network. Key points include:

Card issuers must not enter into agreements that restrict them from using multiple card networks.
Card issuers must offer customers the option to choose from multiple card networks at the time of issue.
For existing cardholders, this option will be provided at the time of the next renewal.
The directions are applicable to card issuers with over 10 lakh active cards, except for those who issue credit cards on their own authorized card network.
* The directions will be effective six months from the date of the circular.

These directions are intended to promote the availability of choice for customers and ensure a competitive payment system in India.