Debit card, Credit card rule to change: Soon you will be able to choose your card network provider

economictimes.indiatimes.com:

RBI) has proposed to offer you an option to choose the network provider for your debit card or credit card or prepaid card. At present, when you apply for a debit or credit card, you usually don't get to choose the network provider as it is decided by the card issuer. The regulator is all set to change this process.RBI draft proposal on debit, credit card holders getting option to select network provider In a draft circular released on July 5, 2023, the central bank has asked the card issuers i.e., banks and finance companies to allow customers to have more than one card option and allow them to opt for their desired network provider for their cards.

When you apply for a debit card or credit card, you usually do not get an option to choose the card network. Your bank typically has an exclusive arrangement with any of the card networks such as Visa, Mastercard or RuPay, etc. So, the banks issue cards on their preferred network.

Currently, there are five card networks in India a) American Express Banking Corp., b) Diners Club International Ltd., c) MasterCard Asia/Pacific Pte. Ltd., d) National Payments Corporation of India – RuPay, and e) Visa Worldwide Pte. Limited.

This happens primarily because the card network providers have restrictive agreements due to which card issuers are unable to offer multiple options to their customers. «The authorised card networks tie up with banks / non-banks for issuance of debit/credit/prepaid cards. The choice of affiliated network for a card issued to a customer is decided by the card issuer and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements.