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RBI releases draft circular on credit card network portability

July 10, 2023

RBI releases draft circular on credit card network portability
The Reserve Bank of India (RBI) has unveiled a draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network, marking a potentially revolutionary development on a global scale. This regulation challenges the prevailing practice where card network options are predetermined through agreements between issuers and networks.

As per the draft circular issued by the RBI, card issuers will be prohibited from entering into any arrangement or agreement with card networks that restricts them from accessing the services of other card networks. 
 
The RBI stated that the current arrangements between card networks and card issuers, be it banks or non-banking institutions, do not promote customer choice and availability. This proposed regulation aims to enhance flexibility and competition in the credit card market, empowering users with the freedom to choose the card network that best suits their preferences and requirements.
 
Card network portability enables consumers to transfer their card accounts from one network to another, similar to how we can switch mobile service providers while retaining the same phone number. With card network portability, cardholders have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact.
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