On July 5, 2023, the RBI proposed a set of guidelines for card networks and banks, which has left many consumers confused.
The proposed guidelines are as follows:
Now, many consumers are under the impression that, after implementation, all banks must offer their credit cards on all card networks. According to some individuals on Twitter, they have contacted Amex to convert their Amex Platinum charge card network from Amex to Rupay.
Let's break down the guidelines first.
A bank should allow customers to change their card network only if the bank officially offers the same card in another card network.
Let me provide an example here:
Suppose you have an HDFC Regalia Visa card, and you wish to switch the card network to Mastercard. Now, we know that HDFC Bank offers the Regalia card in Visa, Mastercard, and Rupay card networks, So they should approve your request and change your card network to Mastercard. However, if you request HDFC to change your card network from Visa to Amex, HDFC Bank is not obligated to approve your request since they do not offer the Regalia card on the Amex card network.
So, no, you cannot ask Amex India to change your card network from Amex to Rupay or any other card network. Your dream of holding an Amex Platinum Card on the Rupay network will not be fulfilled anytime soon.
The proposed guidelines are as follows:
- 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 shall issue cards across more than one card network.
- 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.
Now, many consumers are under the impression that, after implementation, all banks must offer their credit cards on all card networks. According to some individuals on Twitter, they have contacted Amex to convert their Amex Platinum charge card network from Amex to Rupay.
Let's break down the guidelines first.
A bank should allow customers to change their card network only if the bank officially offers the same card in another card network.
Let me provide an example here:
Suppose you have an HDFC Regalia Visa card, and you wish to switch the card network to Mastercard. Now, we know that HDFC Bank offers the Regalia card in Visa, Mastercard, and Rupay card networks, So they should approve your request and change your card network to Mastercard. However, if you request HDFC to change your card network from Visa to Amex, HDFC Bank is not obligated to approve your request since they do not offer the Regalia card on the Amex card network.
So, no, you cannot ask Amex India to change your card network from Amex to Rupay or any other card network. Your dream of holding an Amex Platinum Card on the Rupay network will not be fulfilled anytime soon.
