RBI’s multiple card rule kicks off tomorrow

From October 1, banks will provide customers the option to choose from multiple card networks like Visa, MasterCard, and Rupay for their debit, credit, and prepaid cards.

On July 5, the Reserve Bank of India (RBI) had released a draft circular on changing the arrangements between card networks and banks and non-bank entities authorised to issue cards.

According to the notification, cards must be issued across more than one network and the issuers must give their customers the option to choose from them.

Customers can exercise the option at the time of the issuance of the card or at any other time. These orders were stated to be effective from October 1.

The RBI also said the card issuers should not enter into any arrangement or agreement with card networks that restrained them from taking the service of other card networks, thereby debarring banks from entering into exclusive contracts with networks.