RBI Credit Cards Rule: Now customers will have the freedom to choose which network’s credit card they want. The new rule has come into effect from September 6, 2024.
New Delhi. You eat food of your choice, wear clothes of your choice. When it comes to credit card network, your will does not prevail. You have no say on which network’s credit card the bank will give you. But from today (September 6), this will not happen, that is, now you will get the freedom to choose the card network of your choice. In simple language, now you can choose any network Visa or Mastercard or Rupay for your credit card.
The Reserve Bank of India (RBI) had issued a circular in March regarding this. Through this, banks and non-bank credit card issuers were banned from entering into exclusive agreements with card networks. RBI believes that banks and financial companies issuing credit cards should give customers the option to choose the credit network of their choice.
Competition will increase among payment companies
For a long time, Visa and Mastercard have been the first choice of banks or financial institutions issuing credit cards. With the expansion of RuPay’s network, they are now facing competition. Experts say that customers will benefit from this move of RBI.
American Express exempted
This rule has been exempted for American Express, which operates its own independent network.
What is a credit card network?
Currently there are 5 authorized credit card networks in the country that have the license to tie up with banks and financial institutions. These are Visa, MasterCard, RuPay, American Express and Diner’s Club
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