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RBI issues new guidelines for issuance of credit cards, allow customers to choose from multiple card networks

RBI guidelines: The Reserve Bank of India on Wednesday issued new guidelines aimed at providing more options and flexibility for credit card customers. The central bank said card issuers must allow provide an option to their eligible customers to choose from multiple card networks at the time of issue. “On a review, it is observed that some arrangements existing between …

The story so far: On July 5, apex banking regulator Reserve Bank of India floated a draft circular seeking comments from stakeholders about mandating that card issuers provide their customers with the choice of multiple card networks. The regulator has also proposed that cards be issued across more than one network, with issuers not enteringinto any arrangement or agreement with …

Customers

The Reserve Bank of India has released directions on issuing credit and debit cards, aiming to empower card users and check misconduct of issuers. Non-bank lenders must seek RBI nod before issuing credit cards, and follow strict regulations on sharing data even with their co-branding partners. The regulations empower credit card customers, mandate lenders to take consent of customers on …

During the recent sale events from Amazon and Flipkart, customers who have co-branded cards from the e-commerce companies got the usual 5% discount. Credit card issuers prefer such tie-ups as customers are likely to use co-branded cards often due to loyalty. Yatra has a co-branded card with SBI Cards and Payment Services Ltd and MakeMyTrip offers one in partnership with …

How issuers are using tech to improve customers’ credit card experience

As courier services were disrupted during the lockdown, private lender RBL Bank was unable to deliver credit cards to customers who got an approval. “They could at least start using the card online until their physical card arrives,” said Sankarson Banerjee, chief information officer at RBL Bank. While digital KYC resolved the problem of customer acquisition, card issuers still had …