Credit Card Rules: RBI has made new rules regarding credit cards, now you will choose your card

RBI New Card Issuance Rules: The Reserve Bank of India (RBI) has made new guidelines for issuance of credit cards by banks and NBFCs. According to these guidelines, card issuing banks and NBFCs have been instructed to give customers the option of which network they want to get the card from. RBI clarified that these banks or NBFCs should not enter into special arrangements or agreements with any card networks like American Express, Mastercard Asia, Diners Club and RuPay.

In India, card networks like Visa, MasterCard, American Express, Diners Club, RuPay etc. have tied up with many leading banks and NBFCs.

To whom will the rule not apply?

RBI in its guidelines said that these guidelines are not applicable to those banks or NBFCs which have less than 10 lakh active cards. Additionally, card issuers that issue credit cards on their own authorized card networks are excluded. Even when a card comes up for renewal, banks or NBFCs should give their customers the option to choose the card network.

Why did RBI issue these guidelines?

The Reserve Bank of India (RBI) has found that major banks and NBFCs in the country issue cards of a certain network to the customers without their consent. This benefits the banks because the big card networks have special tie-ups with the banks. This includes a number of benefits including service charges or reward points and customer offers.

what is the benefit of this

• RuPay Credit Card will benefit from these guidelines of Central Bank
• If the customer chooses RuPay credit card then he can link it to his UPI. Currently, UPI payments do not provide the option to link Visa and MasterCard.
• Apart from this, the country's credit card network RuPay has the freedom to choose its customer.
• Annual fee reduced on many Rupay credit cards
• From the merchant's point of view, there is a lower MDR to be paid on RuPay credit card swipes.