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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

Arrangements with Card Networks for issue of Credit Cards

06-Mar-2024 | RBI/2023-24/131 CO.DPSS.POLC.No.S1133/02-14-003/2023-24

RBI has issued notification on Arrangements with Card Networks for issue of Credit Cards for all Authorised Payment System Providers / Participants (Banks and Non-banks) effective from 6th September,2024.

By virtue of this circular card issuers are advised:-

i) Not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
ii) To provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option may be provided at the time of the next renewal.

Card issuers and card networks shall ensure adherence to the above requirements in existing agreements at the time of amendment or renewal thereof, and
fresh agreements executed.

The above directions shall not be applicable to credit card issuers with number of active cards issued by them being 10 lakh or less in number

Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.

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