On July 5, the Reserve Bank of India (RBI) released a draught circular on the issuance of debit, credit, and prepaid cards.
The central bank stated in the circular on arrangements with card networks for the issue of debit, credit, and prepaid cards that card issuers must issue cards across multiple card networks and provide customers with the option of selecting any one of the multiple card networks.
It further stated that the current arrangements between card networks and card issuers, i.e. banks and non-banks, are not in the best interests of customers.
Further, the central bank said that card issuers should not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
The apex bank also said that card issuers and card networks shall ensure to adhere to the existing agreements at the time of amendment or renewal.
The RBI has also invited comments on the draft circular which are to be sent by August 4.