RBI vide circular dated March 06, 2024 has announced Arrangements with Card Networks for issue of Credit Cards. The authorized 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.
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. RBI has directed that the 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 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.
