Sunday, April 21, 2024

credit cards | Using a credit card! changes in regulations; RBI Gives 'These' Important Instructions, Read Details | leader

Leaders Online: The Reserve Bank of India (RBI) has issued new guidelines regarding the issuance and usage of credit cards. Card issuers may not enter into any arrangements or agreements with card networks. which will prevent them from availing the services of other card networks. Card issuers shall offer their eligible customers the option of multiple card network selection at the time of card issuance. While existing cardholders can be given this option at the time of next renewal, RBI said.

“After reviewing the credit card related arrangements, it has been found that certain arrangements between card networks and card issuers are not conducive to availability of consumer preferences,” the RBI said in a circular.

RBI's objective in issuing the guidelines is to ensure greater choice and flexibility to consumers in issuing and using credit cards. The RBI also said that some systems of card networks and card issuers are offering limited options to consumers.

RBI directives

  • Card issuers are prohibited from entering into agreements that prevent them from receiving services from other card networks.
  • Card issuers should offer eligible customers the option of selecting multiple card networks while issuing cards.
  • In case of existing cardholders, this option should be given at the time of their next card renewal.

Implementation since?

These directions will come into effect six months from the date of this circular, RBI said.

Read this;

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