From October 1, 2023, Credit and Debit card holders in India will be able to port their networks to other ones. People are now able to port their mobile networks without compromising the details. Just like that, Credit and Debit cards will also be able for porting.
The Reserve Bank of India said in a circular that Credit, Debit, or prepaid card users will be able to switch or select their preferred card network in a shift from the current practice.
This regulation will allow flexibility and competition in the credit card market. It empowers users with the freedom to choose the card network that suits their interests.
One of the provisions in the RBI’s proposal is the prohibition of agreements that restrict card issuers from utilizing the services of other card networks. The competition among card networks is expected to stimulate innovation and drive improvements across the industry.
Card Portability
With card portability, Credit, Debit, and prepaid card users will be able to switch between any card network of their choice, like Visa, MasterCard, RuPay, etc. This process will not impact the user’s card accounts, balances, and card usage history.
Currently, users don’t get to choose their preferred card network when they apply for any card service. This is something decided between networks and the card issuer.
There are 5 card network companies in India. They are Visa, MasterCard, RuPay, American Express, and Diner’s Club. These companies have tie-ups with different financial institutions.
The card network portability option will be included in existing agreements or at the time of renewal or in fresh agreements executed from the date of the circular. The RBI has invited opinions from various stakeholders on the draft circular up to August 4, 2023.
Banks have a limited period of less than 90 days to implement these changes. The proposed implementation date is October 1, 2023.
