Clarification regarding arrangements with card networks for issue of debit, credit and prepaid cards

RBI vide draft circular issued to Authorized Payment System Providers has issued clarification regarding arrangements with card networks for issue of debit, credit and prepaid cards. 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.

Card issuers and card networks shall ensure to adhere to the above requirements in:

1. Existing agreements at the time of amendment or renewal thereof, and
2. Fresh agreements executed from the date of this circular.