The Reserve Bank has given a wonderful gift to crores of credit card holders of the country. Now credit card users will be able to choose the card network of their choice while purchasing the card. The Central Bank had given information about this earlier also. Now the Reserve Bank has issued instructions today on Wednesday.
They will benefit from the new rules
RBI has issued this instruction under the Payment and Settlement Systems Act 2007. The Central Bank says that card issuing banks can no longer impose credit card networks on customers as per their wish. They will have to give credit card users the option to choose the network. This instruction of the Reserve Bank is going to benefit the credit card users as well as the domestic card network RuPay. The reason was that the credit card was provided to the users by the issuer. Customers did not have the option or right to decide what the credit card network would be. The Reserve Bank has also mentioned this in the instructions. He has said that the card network and the card issuer i.e. banks are limiting the options of the customers by making agreements among themselves. For this reason, the Reserve Bank has had to issue a directive.
Options will have to be given in this way
The Reserve Bank said – whether it is a case of a bank or a non-bank institution, the customer The decision regarding the card network is not made by the customer, but is decided by the agreement of the issuer and the card network. For this reason, the Reserve Bank has banned any kind of agreement between the card issuer and the card network. The Reserve Bank has clearly said in the instructions – Card issuers will not enter into any such agreement with the card network, which would create any obstacle in the way of customers availing the services of other card networks.
Old customers Will also get the option
Reserve Bank has further said – Card issuers will give the option to any eligible customer to choose the card network of his choice while purchasing the card. Regarding old customers, the Reserve Bank has said that they can be given the option to choose the network at the time of renewal of the card.
This feature makes the RuPay card special
The card network Currently, American Express, Diners Club, MasterCard, Visa and RuPay have been recognized in India. RuPay network can benefit greatly from this provision of the Reserve Bank. RuPay Credit Card has recently got the facility of UPI payment. Currently this facility is available only on Rupay card. On the basis of government support, RuPay Card has overtaken MasterCard and Visa in numbers, but in terms of value, MasterCard and Visa still dominate, because most of the credit cards with good offers come with these two networks only. This situation is going to change with the latest changes.
Also read: Shock to mutual fund distributors, AMFI bans gifts
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