What is Credit Card Network?

With the expansion of banking services, the penetration of credit cards is also increasing.  The rules related to credit cards are also changing. Credit card users are increasing rapidly in India. The Reserve Bank is now preparing to make a new change in this matter. After the implementation of this change, customers will be able to port in the case of credit cards as well, which is currently available in the case of mobile numbers.

Mobile number portability ie MNP is not a new thing anymore. MNP was started with the aim of providing better service to the customers. If you are not satisfied with your current service provider, you can easily port your mobile number. The Reserve Bank wants to do something similar in the case of credit cards. This is called credit card network portability.

Before moving forward, let us know what is this credit card network. If you also use a credit card, then you must have seen the name of Master Card, Visa, Rupay, Diners Club etc. on your card. These are credit card networks. Banks connect to this network to issue credit cards. This network makes credit card transactions possible. They act like a bridge between different banks.

RBI says that customers should be given the facility to choose the credit card network of their choice. The Reserve Bank has issued a draft circular in this regard. If this draft becomes a rule, banks will not be able to keep any network credit card with you. Banks have to ask customers which network’s credit card they want.

Now the question is if someone already has a credit card and wants to change his network, is it possible? The Reserve Bank has also made a provision for this in the draft. Every credit card has a validity which can be 1 year, 2 years, 4 years etc. For this, you can see the expiry date of your card. After this, the card will have to be renewed. Old customers will get the option to change the network while renewing.

The biggest advantage of this provision of the Reserve Bank is to get customers. Different networks offer different features on their cards. Some have lower fees, while others offer more rewards. Similarly, cashback and usage rewards for each network are different. With the facility of changing the network, the user will be able to choose the right network according to his usage.

Along with this, the indigenous network Rupay can also get a big benefit from this. The Reserve Bank has already launched the UPI facility for credit cards. However, this feature is not for everyone. Only RuPay card users can access their credit cards through UPI. In such a situation, a large number of users can adopt Rupay if the network switching facility is available.

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