The Reserve Bank has given a great gift to many people who use credit cards in the country.
Now, when you get a credit card, you can choose which company’s network you want to use.
The Central Bank told us about this before, and now they’ve given official instructions today, on Wednesday.
Here’s how people will benefit from these new rules
The RBI (Reserve Bank of India) made this rule under a law from 2007. They say that banks can’t just decide which network to use for your credit card anymore.
They have to let you choose. This is good for credit card users and for RuPay, which is a network based in India.
Why did the Reserve Bank make these instructions?
Before, banks would decide which network to use for your credit card without asking you. The Reserve Bank says this isn’t fair.
They’ve told us that banks and card networks shouldn’t make deals that limit your choices. That’s why they had to make these instructions.
How will it work?
The Reserve Bank says that whether it’s a bank or another company, they can’t decide which network to use without asking you.
They can’t make deals that stop you from using other networks either. This is to make sure you have options when you get a credit card.
What about existing customers?
If you already have a credit card, banks will give you the choice to change networks when it’s time to renew your card.
Why is RuPay special?
In India, there are different card networks like American Express, Diners Club, MasterCard, Visa, and RuPay. RuPay is special because it’s based in India.
It’s getting popular, especially with the government’s support. It’s even got features like UPI payments.
This change will help RuPay grow even more, and it’ll give people more options when they choose a credit card.
