Earlier, in 2023, the RBI drafted a circular regarding card network agreements and card network changes, wherein they mentioned that banks and non-banking card issuers should not sign any agreements with card networks that prevent them from issuing cards on other card networks.
Now, on March 6, 2024, the RBI released a notification clarifying the matter.
Some important points include:
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.
Card issuers and card networks shall ensure adherence to the above requirements in:
This provision will take effect six months from today. However, this requirement does not apply to credit card issuers with fewer than 10 lakh active cards issued by them.
3. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
This means that American Express India is excluded, and they are not obligated to offer multiple card networks to their customers as they issue credit cards on their own card network.
This news might disappoint those who were considering getting an American Express Platinum Charge Card on the RuPay card network.
Earlier, banks used to offer a credit or debit card on a select card network, and there was no option to change the network. Many people asked their bank to issue RuPay debit and credit cards, but banks used to deny their request. However, now banks cannot do this anymore.
Although core card benefits depend on the credit card you opt for, in some cases, we get some extra card network-specific offers. So it's always better to have the flexibility of changing the card network at your convenience. For example, if you have an HDFC Infinia card available on two card networks, Visa and Mastercard, you enjoy the same benefits and reward system on both card networks. On the other hand, the IndusInd Bank Heritage Metal Credit Card is available on Visa Infinite and Mastercard World Elite. If you choose Visa, you will not get Club ITC Culinaire membership, but with Mastercard, you will get ITC Culinaire membership. RuPay credit and debit cards offer some unique benefits that you can't get with any other card networks. RuPay Select, the most premium variant of the RuPay network, offers benefits such as free OTT subscriptions, free spa visits, free annual health checkups, and much more. To learn more about RuPay Select benefits, check this:
1. RuPay Select Debit Card Benefits: https://www.technofino.in/community...select-debit-card-issuing-bank-charges.10134/
2. RuPay Select Credit Card Benefits: https://www.technofino.in/community...dit-card-benefits-how-to-claim-benefits.3962/
But remember, card issuers are not bound to offer all their cards on all card networks, they might offer one of their cards on only one card network and another on three different card networks.
Link to the notification: https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12619&Mode=0
Now, on March 6, 2024, the RBI released a notification clarifying the matter.
Some important points include:
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.
Card issuers and card networks shall ensure adherence to the above requirements in:
- existing agreements at the time of amendment or renewal thereof, and
- fresh agreements executed.
This provision will take effect six months from today. However, this requirement does not apply to credit card issuers with fewer than 10 lakh active cards issued by them.
3. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
This means that American Express India is excluded, and they are not obligated to offer multiple card networks to their customers as they issue credit cards on their own card network.
This news might disappoint those who were considering getting an American Express Platinum Charge Card on the RuPay card network.
Earlier, banks used to offer a credit or debit card on a select card network, and there was no option to change the network. Many people asked their bank to issue RuPay debit and credit cards, but banks used to deny their request. However, now banks cannot do this anymore.
Although core card benefits depend on the credit card you opt for, in some cases, we get some extra card network-specific offers. So it's always better to have the flexibility of changing the card network at your convenience. For example, if you have an HDFC Infinia card available on two card networks, Visa and Mastercard, you enjoy the same benefits and reward system on both card networks. On the other hand, the IndusInd Bank Heritage Metal Credit Card is available on Visa Infinite and Mastercard World Elite. If you choose Visa, you will not get Club ITC Culinaire membership, but with Mastercard, you will get ITC Culinaire membership. RuPay credit and debit cards offer some unique benefits that you can't get with any other card networks. RuPay Select, the most premium variant of the RuPay network, offers benefits such as free OTT subscriptions, free spa visits, free annual health checkups, and much more. To learn more about RuPay Select benefits, check this:
1. RuPay Select Debit Card Benefits: https://www.technofino.in/community...select-debit-card-issuing-bank-charges.10134/
2. RuPay Select Credit Card Benefits: https://www.technofino.in/community...dit-card-benefits-how-to-claim-benefits.3962/
But remember, card issuers are not bound to offer all their cards on all card networks, they might offer one of their cards on only one card network and another on three different card networks.
Link to the notification: https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12619&Mode=0
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