RBI New Credit franchisee change rule effective from 6 September
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new credit card or renewing an existing one, Indian credit cardholders will have the freedom to select their preferred card network (Mastercard, RuPay, or Visa) September 6 onwards. This change is due to the Reserve Bank of India's (RBI) recommendations, which seek to improve user experience and promoting competition in the digital payments market.
You generally do not get an option to select the card network when applying for a credit or debit card. Usually, your bank has a special agreement with one or more card networks such as Visa, Mastercard, RuPay, etc. Thus, cards are issued by banks on their preferred network. RBI had stated in its draft circular that eligible users must be provided a choice by their card issuers to choose any one among the various card networks. Customers can access this option either at the time of issue or at any subsequent time.
It's crucial to note that above does not apply to credit card issuers with 10 lakh or less active cards. The circular does not apply to card issuers that issue credit cards through their own approved card network.
Banks and non-bank card issuers were restrained from entering into special agreements with card networks by RBI in its circular issued on March 6. The central bank desires that both banks and non-banks allow their customers to select from a variety of card networks.
source-Times of india
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I won't hahaha
I have one visa one master card
Will be more than happy to have the rest as rupay hahaha
If rupay variant itself is not launched by bank. What will the customer do?
like SBI cashback , axis ace .. etc
so there will specific cards issued without rupay for sure , as RBI still can't force this
One thing that people don't realize is that this rule will bring further devaluation in credit cards. Everyone is like "Let's get Axis Airtel, Amazon ICICI etc on Rupay and get 1% on UPI transactions too". But banks are smarter, they can exempt UPI transactions for such 1% cashback scenarios, or remove the benefit completely.
https://economictimes.indiatimes.com/wealth/spe...
RuPay Card is like AMD, and Visa/Mastercard is like Intel.
RuPay is slowly and steadily strengthening its foundation in the background.
For the next 10 years, Visa and Mastercard are not going to face any problems. I remember there was an article in the Economic Times, maybe in 2018, mentioning that NPCI's shareholder banks HDFC, ICICI and SBI had a closed-door meeting. Some leaked information from that meeting revealed that HDFC, ICICI and SBI are planning with NPCI to reduce the usage of credit cards in India after the next 15 years.
That's when I realized that NPCI was working on Credit on UPI. Then job vacancies for this started appearing on LinkedIn. Later, everyone knows, RBI announced RuPay credit cards on UPI, and now Credit Line on UPI is also coming.
A few years ago, the CEO of NPCI mentioned in a podcast that when RuPay becomes 'for-profit', banks will receive dividends, encouraging them to promote RuPay. And just last month, news came out that NPCI is planning to make RuPay Card and Credit UPI a separate 'for-profit' company.
Conclusion - NPCI is doing extensive long-term planning in the background with its owner banks.
Those who run NPCI are very patience people. And trust me, such people are very dangerous. They can sink even the biggest rival companies.
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RBI is trying its best to promote Rupay lol this way because after people got used to rupay scan and pay
they will obviously choose rupay (if no international transaction is in their mind which obviously for many in india)
so this is tricky way for RBI to make people move to Rupay hahahahaha but informed users with knowledge of international transactions will ditch Rupay xD:)
since bank and financial institutions are not valuing Rupay xD RBI is forcing this indirectly