The rules on debit-credit card allotment have been revised. Banks can now only impose penalties on credit card balances. Additionally, the RBI requires a monitoring system for fund usage, with card issuers needing monitoring mechanisms. Customer consent is now mandatory for card renewal.
Changes were implemented on March 6, altering the rules for credit card issuance. The new regulations demand credit card companies to offer various options to customers. Card networks must engage in agreements with banks/NBFCs for issuing cards, with cardholders selecting the network linked to the issuer's agreement. The RBI mandates that companies provide customers with multiple network choices and prioritize consumer interests in agreements.
Card issuers are prohibited from restricting customers from other network services. Eligible customers should be allowed to choose multiple networks during card selection, and existing cardholders are advised to prepare for renewal.