New Delhi: The Reserve Bank of India (RBI) issued a draft circular on the issuance of debit, credit, and prepaid cards on Wednesday.
The circular directs that card issuers shall issue cards across more than one card network and also give an option to customers to choose from any one among the multiple card networks.
On arrangements with card networks for the issue of debit, credit, and prepaid cards, the circular stated that the existing arrangements between card networks and card issuers i.e., banks and non-banks, are not conducive for customers.
In addition to this, the RBI said that card issuers should not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
It added that card issuers and card networks shall ensure that they follow the existing agreements at the time of amendment or renewal.
The central bank has also invited comments on the draft circular by August 4.
With inputs from IANS