Team Blitz India
NEW DELHI: Several banks have sought clarity from the Reserve Bank of India (RBI) regarding the implementation of the new guidelines issued on March 6, which mandate offering customers the option to choose from multiple card networks for credit cards, according to a report in the ET.
The RBI’s directive requires banks and non-banking financial companies to provide this choice both at the time of issuance and renewal. This directive will take effect from September 6, 2024.
One suggestion is that the guidelines should apply prospectively, meaning new credit card customers would choose their preferred network while existing customers would continue with their current network until renewal.
Banks, however, are also concerned that implementing these guidelines during renewals could disrupt business operations. Existing cardholders have been provided offers based on customer profiles, co-branding arrangements, and specific pricing benefits.
These guidelines require card issuers to provide this choice both during the initial issuance and at the time of renewals. However, banks are unsure whether this option needs to be extended to all existing customers or only at renewal time.
