Credit Card Issuance Rules: The banking regulator has issued this notification in this regard. According to this notification, the bank has decided to change the rules for issuing credit cards.
Credit Card Issuance Rules: A big news has come for credit card issuing companies. The central bank i.e. Reserve Bank of India (RBI) has made changes in the rules for issuing credit cards. The banking regulator has issued this notification in this regard. According to this notification, the bank has decided to change the rules for issuing credit cards. According to the notification, now credit card companies will have to provide many options to the customers. The notification states that authorized card networks tie up with banks/non-banks for issuing credit cards.
RBI gave these instructions
The notification states that the choice of network for a card issued to a customer is decided by the card issuer (bank or non-bank) and is subject to the arrangements made by the card issuer in terms of its bilateral agreements. I keep the card with the network.
RBI said that on review, it was found that certain arrangements existed between the card networks and the card issuer customers. RBI said that card issuers are not conducive to the availability of options for customers.
Many options should be provided to customers
RBI said in the notification that credit card companies will have to provide many options. Companies will have to provide the option of multiple card networks to customers. RBI said that the arrangement between card networks and companies is not favorable. Companies should enter into agreements keeping in mind the interests of customers
The notification states that card issuers will not enter into any arrangement or agreement with the card network that prevents customers from availing the services of other card networks. Card issuers will provide their eligible customers the option to select multiple card networks at the time of card selection. Apart from this, it has also been said to give time to the existing cardholders for the next renewal.
Rules will not apply to these companies
Let us tell you that these rules will not apply to those people whose number of active cards issued is 10 lakh or less. Additionally, card issuers that issue credit cards on their own authorized card networks are excluded from this. Please note that these rules will remain effective for 6 months from the date of notification.
