With RBI’s new rule, you can choose card network

In a move aimed at boosting competition, RBI has ordered card issuers to allow customers to choose from multiple networks like Visa, Mastercard and RuPay.

It has also asked banks to stop entering into exclusive agreements with card networks. The move is positive for NPCI’s RuPay cards because of their UPI integration. However, most banks have flagship card products in partnership with either Visa or Mastercard.

In 2022, RBI allowed cardholders to store their card details in UPI apps and make payments by scanning QR codes.

While the circular applies to credit card networks, only RuPay has received permission to integrate with UPI. The directive will be effective in six months.

According to bankers, giving customers an option to choose card network will require major changes in IT systems. For most banks, the issue of cards is a straight process – the customer applies online, the bank approves the application, and the card is sent for printing.