• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Bank cannot deny to choose card network on credit card

I’ll ask My Airtel, APay Cards on Amex Networks
Simply click on Rupay(5-10 points for every ₹100) even One Card on Rupay
That's never going to happen. If rbi directs this now, what's next? Forcing issuers to allow to redeem cv points on spicejet?

What it aims to do is allow to switch between available networks. Neu Infinity comes in rupay and visa. You can switch between them. You can't demand neu infinity in amex or diners.
 
That's never going to happen. If rbi directs this now, what's next? Forcing issuers to allow to redeem cv points on spicejet?

What it aims to do is allow to switch between available networks. Neu Infinity comes in rupay and visa. You can switch between them. You can't demand neu infinity in amex or diners.
So basically this affects SBI and Axis as others are okay with you choosing any network anytime.
 
It will only work if card is available on other network. I am thinking to replace few VISA cards into MC.
 
Queries and analysis:

RBI had earlier released the "Draft Circular - Arrangements with Card Networks for issue of Debit, Credit and Prepaid Cards" on July 05, 2023 which states: [PDF attached]

3. In exercise of the powers conferred under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), the RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs as under:

  1. Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
  2. Card issuers shall issue cards across more than one card network.
  3. Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time.
Even though it is a 'draft circular' it goes on to say:
5. The directions at para 3 (b) and (c) above shall be effective from October 01, 2023.
So, that is means as of now it is an enforced circular for the relevant portions.

Then this final circular comes dated March 6, 2024 and supersedes the section of the aforementioned existing circular 3.b. with its own 3.b. which states:
b) Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option may be provided at the time of the next renewal.
So, the provision has been revised, potentially favoring card issuers. As per it, for existing customers card network change is not possible anymore at ANY subsequent time but at the time of next renewal only.
This the new circular also says this:
7. The directions at para 3(b) above shall be effective six months from the date of this circular.
Meaning it will be effective from 6 September, 2024.

Does it mean, as of now the previous circular is in effect until 6 September? Your commentary is welcome.
 

Attachments

since ICICI and IndusInd are some of the banks that actually offer cards on AMEX, so can we, uk, ask for Amazon pay ICICI card on AMEX, or atleast Platinum Chip Card, or Legend card? the circular says the bank has to have a existing relations with that card network, so this should be possible right?
 
If this is seriously implemented without any checks so many cards will be useless especially reward points based ones, example: Apay on Rupay with all current benefits, that means 1% cashback on upi, it will make coral cards useless, or rbl cards useless. I think changing card network may attract Fees + changes in annual fees, like Apay is LTF CARD, but they may not give Apay Amex as LTF. Also if sbi issues simply click card on rupay(5-10 points per 100) it makes most sbi cards useless.
 
New notification which enables you to chose your own card network provider.


Will this let Diners Club Black holders chose Visa / Mastercard? This would solve a lot of problems.
No!
You can't get visa hdfc black credit card... lol
 

Credit card new rules | From Sept 6, you can choose among Mastercard, RuPay or Visa as a preferred network​

Starting September 6, 2024, credit cardholders in India will have the option to choose their preferred card network—Mastercard, RuPay, or Visa—when applying for a new card or renewing an existing one.

This new flexibility comes as a result of the Reserve Bank of India’s (RBI) guidelines aimed at improving customer choice and fostering competition in the digital payments space.
 

Credit card new rules | From Sept 6, you can choose among Mastercard, RuPay or Visa as a preferred network​

Starting September 6, 2024, credit cardholders in India will have the option to choose their preferred card network—Mastercard, RuPay, or Visa—when applying for a new card or renewing an existing one.

This new flexibility comes as a result of the Reserve Bank of India’s (RBI) guidelines aimed at improving customer choice and fostering competition in the digital payments space.
Did someone mail for infinia or sbi cashback in rupay?
 
RBI/2023-24/131
CO.DPSS.POLC.No.S1133/02-14-003/2023-24

March 06, 2024​

The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Providers / Participants (Banks and Non-banks)

Madam / Dear Sir,

Arrangements with Card Networks for issue of Credit Cards

The authorised card networks tie-up with banks / non-banks for issuance of credit cards. The choice of network for a card issued to a customer is decided by the card issuer (bank / non-bank) and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements.

2. On a review, it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers.

3. In exercise of the powers conferred under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), the RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs as under:

  1. Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
  2. Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option may be provided at the time of the next renewal.
For the purpose of these directions, the following definitions are used:

  1. Authorised card networks: American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/ Pacific Pte. Ltd., National Payments Corporation of India–Rupay, and Visa Worldwide Pte. Limited.
4. Card issuers and card networks shall ensure adherence to the above requirements in:

  1. existing agreements at the time of amendment or renewal thereof, and
  2. fresh agreements executed.
5. The directions at 3(b) above shall not be applicable to credit card issuers with number of active cards issued by them being 10 lakh or less in number.

6. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.

7. The directions at para 3(b) above shall be effective six months from the date of this circular.

Yours faithfully,

(Gunveer Singh)
Chief General Manager-in-Charge
 
Did someone mail for infinia or sbi cashback in rupay?
Card issuers and card networks shall ensure adherence to the above requirements in:
  1. existing agreements at the time of amendment or renewal thereof, and
  2. fresh agreements executed.
This will applicable on all new cards launched by Bank and not applicable till the old agreement in effect, once agreement renew or any amendment will be done it is applicable
 
Back
Top