RBI issues draft circular on issuance of debit, credit, prepaid cards
The Reserve Bank of India (RBI) has issued a draft circular addressing the arrangements between card networks and card issuers when it comes to the issuance of debit, credit, and prepaid cards. The circular aims to enhance customer choice and ensure a competitive market for card networks.
As things stand, card networks collaborate with banks and non-banking institutions for the issuance of debit, credit, and prepaid cards. When a card is issued to a customer, the choice of the affiliated network is determined by the card issuer. This selection is based on the previous arrangements established between the card issuer and the card networks through bilateral agreements.
After a review of this system, the RBI has acknowledged that the existing arrangements between card ne...