RBI New Rule: RBI has proposed changes in Wednesday’s credit card, debit rules. RBI has issued a new circular related to this. Debit, pre-paid card rules can also change after RBI’s decision. RBI says that the card will not be issued for a particular network. The card should be eligible to be used on all networks.
RBI issued draft circular-
Credit Card, Debit card, Pre Paid Card should not be issued for any particular network. Credit Card, Debit Card, Pre Paid Card should be allowed to be used on all networks. Opinion of common people has been sought on this.
What is the whole matter – The role of card networks is to facilitate transactions between merchants and card issuers. To do this, card networks provide the infrastructure for this.
For this they also charge fees. The four major credit card networks are Mastercard, Visa, American Express and Discover. Of the four networks, two are also card issuers – Amex and Discover.
Apart from helping you with your transactions, these card networks also decide where credit cards can and cannot be accepted.
Not every merchant accepts all networks, and you may see different network logos at checkout. If put in simple words, Visa card does not work anywhere and Master card does not work anywhere. That is why RBI is bringing new rules related to it.
Why is this happening – RBI is bringing new rules to promote Rupay card of India. Because only American Visa and MasterCard usually provide card facilities. Also, there is no RuPay card entry in their network.
