The RBI has just lobbed a disruptor at the card sector

economictimes.indiatimes.com:

Reserve Bank of India (RBI) could have fired a shot in India's war on international card networks. The Ukraine-Russia conflict has highlighted how a country can be economically damaged if it is cut off from international payment networks. India's efforts to become self-reliant in payments systems and networks predate the war.

But the war has exposed how utter reliance on international networks makes a country vulnerable if it is not allied with big Western powers that can influence such networks.What the RBI has proposed The RBI has proposed that banks and card network providers such as Mastercard, Visa and American Express cannot get into exclusive arrangements. It says such arrangements curb competition and put the consumer at a disadvantage. Networks of Mastercard, Visa, American Express, Diners Club International, and homegrown RuPay provide services to customers in India, but the provider is usually predetermined by the bank depending on the card issued.What will change?Card issuer banks will henceforth have to issue cards from more than one network provider and will have to provide an option to customers to choose any one among the multiple card networks.

The RBI has called for public comments by August 4 and set October 1 as the date to implement the circular. When the new rule comes into force, customers can choose their card provider either at the time of issue or any other subsequent time. All new card agreements will compulsorily have to be rejigged when this circular is implemented.