Business news: RBI’s new circular, banks should give customers the option to choose card network

If you are a debit or credit card customer, you will now be able to choose the network of your choice. Banks will have to provide this facility. RBI said in the order, while issuing credit-debit cards, banks will give the customers the option to choose any network. Banks cannot force the customer to choose any one card network. This rule will have to be implemented within six months.

RBI said in a circular on Wednesday that card issuing companies should not enter into any agreement or arrangement with the card network that prevents customers from availing the services of other networks. Those customers who currently have cards will have to be given the option to choose the network at the time of card renewal. The central bank said, the review has revealed that the arrangements existing between card networks and card issuers are not suitable for providing choice to customers.

Bank Bazaar CEO Adil Shetty said, this decision of RBI will give more options to the customers while getting a new card or while renewing it. This will improve consumer experience.