Credit card users are increasing rapidly in India. With the expansion of banking services, the reach of credit cards is also increasing. Along with this, the rules related to credit cards are also changing. The Reserve Bank is now preparing to make a new change in this matter. After this change comes into effect, in the case of credit cards also, customers will be able to port in the same way, as is currently available in the case of mobile numbers.
Credit card network portability
Mobile number portability ie MNP is no longer a new thing. MNP was started with the aim of providing better service to the customers. If you are not happy with your current service provider, then you can easily port your mobile number. The Reserve Bank wants to do something similar in the case of credit cards. It is named Credit Card Network Portability.
What is Credit Card Network?
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 the credit card networks. Banks tie-up with these networks to issue credit cards. These networks make credit card transactions possible. In a way, they act like a bridge between different banks.
Reserve bank draft
The Reserve Bank says that customers should be given the facility to choose their preferred credit card network. The Reserve Bank has issued a draft circular regarding this. If this draft becomes a rule, then banks will not be able to hold you a credit card of any network on their own. Banks will have to ask customers which network’s credit card they want.
This facility will be available on the old card
Now the question arises that if someone already has a credit card and wants to change its 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 that the card has to be renewed. Old customers will get the option to change the network while renewing.
customers will be benefited
The biggest benefit from this provision of the Reserve Bank is going to be to the customers. Different networks offer different features on their cards. Some have less fees, while others give more rewards. Similarly, cashback and usage rewards are different for each network. On getting the facility to change the network, the user will be able to choose the appropriate network according to his use.
Rupees will also be lottery
Along with this, indigenous network Rupay can get a big benefit from this. The Reserve Bank has already introduced the UPI facility for credit cards. Although this facility is not for everyone. Only Rupay card users can use their credit cards through UPI. In such a situation, a large number of users can adopt Rupay after getting the facility to change the network.
