RBI issues draft circular on issuance of debit, credit and prepaid cards

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The Reserve Bank of India (RBI) on July 5 issued a draft circular on the issuance of debit, credit and prepaid cards.

In the circular on arrangements with card networks for the issue of debit, credit and prepaid cards, the central bank highlighted that card issuers shall issue cards across more than one card network and they should provide an option to the customers to choose any one among the multiple card networks.

It also said that the existing arrangements between card networks and card issuers i.e. banks and non-banks, are not conducive for customers.

Further, the central bank 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.

The apex bank also said that card issuers and card networks shall ensure to adhere to the existing agreements at the time of amendment or renewal.

The RBI has also invited comments on the draft circular which are to be sent by August 4.