Starting from October 1, customers in India who use credit, debit, and prepaid cards will have the flexibility to choose their service operators and port their networks accordingly. This development allows users to switch between networks such as Visa, Mastercard, RuPay, or any other network of their preference.
The Reserve Bank of India (RBI) issued a circular stating that credit, debit, and prepaid card users will be able to select their preferred card network, marking a departure from the current practice. This move towards card portability provides customers with more options and control over their card networks, similar to porting mobile numbers between telecom operators.
The primary benefit of card portability is that it enables users to switch between card networks like Visa, Mastercard, RuPay, and others. It is important to note that this transition will not impact users’ card accounts, balances, or transaction history. Currently, customers do not have the freedom to choose their preferred card network when applying for card services. The decision regarding the card network is typically made by the networks themselves and the card issuers.
When applying for a debit or credit card, customers do not have the ability to select the network provider as it is determined by the card issuer. The authorized card networks in India presently 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. The card issued to customers usually displays either Visa, Mastercard, Diners Club, or RuPay, indicating the network associated with the card.
Under the current system, the card network provider is chosen by the issuing bank on behalf of the customer. However, with the new implementation, this arrangement will change, allowing customers to have a say in selecting their preferred card network.
The RBI observed that the existing arrangement between card networks and card issuers does not provide customers with sufficient choice. By enabling card portability, the RBI aims to enhance the availability of options for customers, promoting greater competition and customization in the card industry.
This development empowers card users in India to have more control over their payment preferences and aligns with the RBI’s objective of promoting a more customer-centric and competitive environment within the financial sector.
