With card network portability, cardholders will have the freedom to move to a different payment network while maintaining their existing accounts, balances and credit history without any disruption.
Come October 1, 2023, Indian customers using credit cards, debit cards and prepaid cards will have the ability to switch between different card networks. Similar to how you can switch mobile networks between Vodafone, Jio and Airtel and other network providers, bank card users will now have the option to switch between networks such as Visa, MasterCard, RuPay or any other network of their choice.
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The Reserve Bank of India (RBI) has released a new circular that gives card users the power to select their preferred card network, challenging the current practice where network options are predetermined by agreements between issuers and networks.
Card network portability grants consumers the ability to transfer their card accounts from one network to another, much like how we can switch mobile service providers without changing our phone numbers. This means that with card network portability, cardholders will have the freedom to move to a different payment network while maintaining their existing card accounts, balances and credit history without any disruption.
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Currently, when you apply for a debit or credit card, the choice of network provider is typically determined by the card issuer and not by the customer. The authorised card networks in India include American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/Pacific Pte. Ltd., National Payments Corporation of India- RuPay and Visa Worldwide Pte. Limited.
Traditionally, your bank has been responsible for selecting your card network provider, and you would receive a card with either Visa, Mastercard, Diners Club or RuPay branding without any input from you. However, this practice is set to change soon, allowing customers to have the freedom to choose their preferred card network provider.
In a draft circular released on July 5, RBI instructed card issuers, such as banks and finance companies, to offer customers more than one card option and allow them to choose their preferred network provider for their cards.
The regulatory bank further requested card issuers to give eligible customers the flexibility to select one card network from multiple options. Customers can exercise this choice either at the time of card issuance or at a later date. RBI has also prohibited card issuers from entering into agreements that restrict their ability to collaborate with other card networks.
