RBI: Customers will be able to use Debit-Credit card anywhere, RBI’s new rule will give a boost to Rupay card.
Now debit and credit cards can be used anywhere. The Reserve Bank of India (RBI) has said that the card will not be issued for a particular network. It should be allowed to be used on all networks. In this regard, a proposal has been issued to change the rules of these cards. This may come into effect from October 1. RBI has sought public opinion on this proposal. Debit, pre-paid card rules may change after this decision of the central bank.
The role of the card network is to facilitate transactions between merchants and card issuers, RBI said. Yet it so happens that some credit or debit cards do not work at some places. This usually happens at the time of payment with the merchant. Some credit cards are swappable only at select merchants. Not every merchant accepts all networks. Somewhere Visa card doesn’t work and somewhere Master card doesn’t work.
Rupay card will get a boost
RBI is bringing new rules to promote Rupay card on behalf of the government. Because US Visa and Mastercard usually provide card facilities. Also RuPay card is not accepted in their network.
Network option will be available
Card issuers will provide their customers with an option to choose from a number of card networks. This option can be exercised by the customer either at the time of issue or any time thereafter.
Card will have to be issued on more than one network
The RBI said, on a review, it was found that the arrangements in place between card networks and card issuers (banks and non-banks) are not conducive to the availability of choice to customers. Card issuers should not enter into any agreements with card networks that prevent customers from availing services of other card networks. Card issuers will issue cards on more than one card network.
Report of global use of rupee will be studied
RBI will study the report of the Inter-Departmental Group on Rupee Internationalization. RBI has uploaded the report on its website. The central bank says it has nothing to do officially with this report.
RBI constituted an inter-departmental group under the chairmanship of Radha Shyam Ratho, Executive Director, to consider the internationalization of the rupee. agency
