In India, the use of credit cards is fast rising. Credit cards are becoming more widespread due to the expansion of financial services. The laws governing credit cards are also changing in conjunction with this. The Reserve Bank is currently getting ready to change this situation again. Customers will be able to move their credit cards after this change goes into effect like they can now do with their cell phones.
Credit card network portability.
MNP, or mobile number portability, is no longer a novel concept. MNP was founded to offer clients better service. You can effortlessly port your mobile number if you are unsatisfied with your current service provider. Regarding credit cards, the Reserve Bank plans to take a similar action. Credit Card Network Portability is its name.
What is a Credit Card Network?
You must have noticed the names of MasterCard, Visa, Rupay, Diners Club, and other credit card companies on your card if you too use one. These are the networks for credit cards. To issue credit cards, banks partner with these networks. Transactions using credit cards are enabled by these networks. They function somewhat as a bridge connecting various banks.
Reserve bank draft.
According to the Reserve Bank, customers should have the option to select their preferred credit card network. Regarding this, the Reserve Bank has released a draught circular. Banks won't be able to issue you a credit card from any network on their own if this bill becomes law. Customers must tell banks which network's credit card they prefer.
This facility will be available on the old card.
The question is: Is it possible to switch a credit card network if you already have one? In the draught, the Reserve Bank has also included a clause for this. Every credit card has a validity period of 1, 2, 4 years. You can view your card's expiration date for this. The card needs to be renewed after that. Old clients who are renewing will have the option to switch networks.
Customers will be benefited.
The customers will stand to gain the most from this Reserve Bank arrangement. On their cards, several networks offer a variety of functions. Some provide greater incentives while others charge lower costs. The same is true for use bonuses and cashback, which vary by network. The user can select the best network for his needs once they can switch networks.
Rupees will also be lottery.
Additionally, the local network Rupay stands to gain significantly from this. The UPI facility for credit cards has already been made available by the Reserve Bank. Though not everyone will benefit from this facility. Use of credit cards through UPI is restricted to holders of Rupay cards. After being allowed to switch networks, many people can embrace Rupay in this scenario.