INVC NEWS
New Delhi : The Reserve Bank of India (RBI) has announced changes to the rules governing credit and debit cards. According to a circular issued by the RBI, cards, including credit cards, debit cards, and prepaid cards, should be allowed to be used on all networks, rather than being restricted to specific networks. The RBI has also invited public opinion on these changes.
Currently, when you use a card for payment, the card network determines where the payment can be made using that particular card. Different credit cards may have different acceptance levels at various merchants and establishments. For example, a Visa card may not be accepted at certain places, while a Mastercard may not be accepted at others. This lack of universal acceptance has prompted the RBI to introduce these new rules to streamline credit card payments.
By allowing cards to be used on all networks, the RBI aims to enhance the convenience of card payments for consumers. The card network acts as an intermediary between the merchant and the cardholder, facilitating the transaction. Card networks, such as Mastercard, Visa, American Express, and Discover, provide the necessary infrastructure for these transactions and charge fees for their services. It’s worth noting that American Express and Discover are both card issuers in addition to being card networks.
The RBI’s decision to change the rules also opens the possibility of revising regulations governing debit cards and prepaid cards. However, further details regarding these potential changes have not been provided at this time.
Please note that the information provided is based on the details you shared, and the RBI’s official circulars and announcements should be referred to for the most accurate and up-to-date information on these changes to credit and debit card rules in India.
