RBI Directs Card Issuers to Offer Choice, Restrains Agreements Limiting Services to Specific Card Networks

The Reserve Bank of India (RBI) has issued directions to card issuers not to enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.

The RBI said that it was observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers. The directive means that a card-issuing bank or non-bank cannot force the card of any particular network on a customer. As per this



direction, the card issuers will have to provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option needs to be provided at the time of the next renewal.

The authorised card networks include American Express Banking Corp., Diners Club International Limited., and MasterCard Asia/Pacific Pte. Limited., National Payments Corporation of India - Rupay and Visa Worldwide Pte. Limited.